NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews focus on 10 companies in five sectors including Dow components Cisco Systems (CSCO) who reports in afterhours trading on Wednesday and Wal-Mart (WMT) who reports premarket on Thursday. Leading the parade is Macy's (M) who reports pre-market on Wednesday.
The 10 stocks include four stocks from the computer and technology sector, three from the retail-wholesale sector, and one each in these sectors; basic materials, construction and consumer staples.
The stock market has been experiencing snap back rallies, and crackles to the downside, but the Fed-induced bubble is not ready to pop. The yield on the 30-year Treasury bond ended last week at 3.853%, which caused the ValuEngine valuation warning to intensify to a new 2013 high with 83.8% of all stocks overvalued. The percent of stocks overvalued by 20% or more now stands at 53%. We now show that all 16 sectors are overvalued, 15 double-digit percentages, with nine overvalued by 21.3% to 28.3%.
The computer and technology sector is 25.2% overvalued with an overweight rating. Of the 1148 stocks 53.4% in this sector have buy or strong buy ratings.The basic materials sector is 5% overvalued with an underweight rating. Of the 395 stocks 65.6% in this sector have sell or strong sell ratings. The construction sector is 16.3% overvalued with an underweight rating. Of the 158 stocks 61.4% in this sector have sell or strong sell ratings. The consumer staples sector is 19.3% overvalued with an overweight rating. Of the 260 stocks 41.9% in this sector have buy or strong buy ratings. The retail-wholesale sector is 22.8% overvalued with an overweight rating. Of the 345 stocks 80.9% in this sector have buy or strong buy ratings.
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