NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews focus on five buy rated companies in the retail-wholesale sector that report quarterly results premarket Thursday including big box retailer Target (TGT - Get Report), casual apparel seller Buckle (BKE) and discounter Dollar Tree (DLTR - Get Report).
On Tuesday I wrote Holiday Sales, Housing Recovery Are Key to Recovery and this theme continues as retail earnings becomes a stock market focus. If earnings reports for retailers are not up to par and if housing data weaken, the stock market becomes vulnerable. Such would be further proof that Federal Reserve policy is failing to help Main Street, USA.
The retail-wholesale sector is 28.4% overvalued with an overweight rating. Of the 345 stocks 80.0% in this sector have buy or strong buy ratings. All five stocks in today's table have buy ratings and all are overvalued by 10.4% to 56.9%. One stock is down 19.7% over the last 12 months while two have solid gains of 46.6% and 105.2% over the 12 months. Two are below their 200-day simple moving averages with three above which reflects the risk of reversion to the mean.
Reading the TableOV/UN Valued: 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 12 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 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months. Value Level: 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.
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