NEW YORK (TheStreet) -- Momentum stocks typically trade higher even though they may be overvalued fundamentally and overbought technically. Apple (AAPL) has been the leader since Nov. 13 gaining 8.5% with Amazon.com (AMZN) just behind with a gain of 8.3%.
Among the eight I have been following, two others gained 5.1% and 6.3% since Nov. 13, while the former leader Chipotle Mexican Grill (CMG) became the laggard losing 3.6% since my Nov. 14 post, Chipotle and Priceline Lead Momentum Stocks While Tesla Lags.
Following monthly benchmark revisions to ValuEngine data the stock market remains intensely overvalued with 84.1% of all stocks overvalued and with 52.4% overvalued by 20% or more. Four of the eight momentum stocks updated today are overvalued by 29.6% to 74.2%.
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Among the eight stocks in today's table five have extremely overbought weekly charts with one having flat momentum and two have declining momentum. Three of the eight stocks have buy ratings according to www.ValuEngine.com with five having hold ratings. One stock is down 1.9% over the last 12 months, while seven have gains of 53.1% to 311.2%. Only one has a reasonable price-to-earnings ratio and three have P/E between 198.3 and 629.3. All eight are well above their 200-day simple moving averages reflecting 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.
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