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Lennar, Oracle on Deck to Report Earnings

NEW YORK (TheStreet) - Today's buy-and-trade earnings previews focus on six diverse companies that report results afterhours today through Wednesday. Homebuilder Lennar (LEN) hammers its earnings results today and Oracle (ORCL) programs its earnings afterhours on Wednesday.

The six stocks profiled here include three from the computer and technology sector, two from the business services sector and one in the construction sector.

Stocks remain entrenched in a ValuEngine valuation warning with 83.2% overvalued with 51.4% overvalued by 20% or more.

The business services sector is 25.5% overvalued with an equal-weight rating. Of the 229 stocks 70.7% in this sector have hold ratings.

The computer and technology sector is 27.8% overvalued with an overweight rating. Of the 1136 stocks 52.3% in this sector have buy or strong buy ratings.

The construction sector is 17.2% overvalued with an underweight rating. Of the 156 stocks 56.4% in this sector have sell or strong sell ratings.

Three of the six stocks in today's post have buy ratings, two have hold ratings and one has a sell rating. All six are overvalued with three overvalued by 16.6%, 19.1% and 28.5%. Two have declines of 9.8% and 13.3% over the last 12 months and two have gained 27.3% and 39.3% over the last 12 months. Two are below their 200-day simple moving averages and four are above their 200-day SMAs.

Jabil Circuit (JBL) ($19.68) has a buy rating, is 16.6% overvalued and has gained 10.6% over the last 12 months. Analysts expect the company to report earnings of 47 cents a share in the after hours this afternoon. The circuit board maker set its 2013 high at $24.32 on Sept. 9 and traded to a second half low at $18.92 on Thursday. The stock has been below its 200-day SMA at $20.68 since Dec. 9. This week's value level is $17.93 with monthly and quarterly risky levels at $23.10 and $23.40.

Lennar ($35.00) has a sell rating, is 4.4% overvalued and has lost 9.8% over the last 12 months. Analysts expect the homebuilder to report earnings of 63 cents a share in the premarket on Wednesday. Lennar has been below its 200-day SMA since June 19 with this average now at $36.84 and is just above its 50-day SMA at $34.86. This week's value level is $34.69 with a semiannual pivot at $35.45 and my semiannual risky level at $40.29. My monthly value level lags at $30.68.

Herman Miller (MLHR) ($29.26) has a buy rating, is 19.1% overvalued and has gained 38.3% over the last 12 months. Analysts expect earnings of 41 cents a share after hours on Wednesday. The office furniture maker set a multi-year intra-day high at $32.31 on Nov. 29 then as low as $28.31 on Friday staying above its 200-day SMA at $27.76. My annual value level is $24.37 with semiannual pivots at $28.80 and $29.09, monthly and quarterly pivots at $29.48 and $29.68 and annual risky level at $30.39.

Oracle ($33.54) has a hold rating, is just 1.4% overvalued and has gained 3.8% over the last 12 months. Analysts expect earnings of 64 cents a share after hours on Wednesday. The software giant traded as high as $35.75 on Dec. 9 and as low as $33.22 on Friday with its 200-day SMA at $33.27. My annual value level is $30.81 with quarterly, monthly and annual pivots at $33.19, $34.05 and $34.68 and semiannual risky levels at $36.42 and $38.05.

Verifone (PAY) ($24.98) has a buy rating, is just 2.8% overvalued and has lost 13.3% over the last 12 months. Analysts expect earnings of 18 cents a share after hours today. The electronic payment solutions provider moved above its 200-day SMA on Oct. 18 now at $21.20 trading to a high of $25.97 on Nov. 19 and is above its 50-day SMA at $23.79. My monthly and quarterly value levels are $23.15 and $23.02 with a weekly risky level at $25.72.

Paychex (PAYX) ($43.17) has a hold rating, is 28.5% overvalued and has gained 27.3% over the last 12 months. Analysts expect earnings of 42 cents a share after hours Wednesday. The payroll processing company set a multi-year intra-day high at $44.63 on Dec. 4 then traded as low as $42.52 on Friday vs. its 50-day SMA at $42.46 and is well above its 200-day SMA at $38.92. My semiannual value levels are $37.88 and $34.29 with a quarterly pivot at $42.46 and monthly risky level at $44.64.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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