NEW YORK ( TheStreet) -- On Thursday, we get earnings reports from a sell-rated trucker, a strong sell-rated semiconductor company and a hold-rated food and drug retailer. More important in my judgment are earnings from two of the four "too big to fail" money-center regional banks.
The computer and technology sector is 23.1% overvalued, but has an overweight rating with 43.8% of the 1,163 stocks in this sector rated buy or strong buy.
The finance sector is 17.3% overvalued with an equal-weight rating.
The retail-wholesale sector is 24.5% overvalued, but has an overweight rating with 79.4% of the 354 stocks in the sector rated buy or strong buy.
The transportation sector is 24.4% overvalued with an "avoid-source-of-funds" rating with 74.3% of the 179 stocks in the sector rated sell or strong sell.
One of the five stocks previewed today is undervalued by 7.8%, with the other four overvalued by 14% to 92.8%. Three stocks have hold ratings, one has a sell rating and one has a strong sell rating. All have gains over the last 12 months with one gaining 92.5% and another soaring by 216.2%. All are trading above their 200-day simple moving averages, which reflects the risk of reversion to the mean.
Reading the Table
OV / UN Valued - The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating - A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy.
Last 12-Month Return (%) - Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage.
Forecast 1-Year Return - Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.