The column labeled 'OV / UN Valued' shows that United Continental (UAL) is the most overvalued by 95.4%.
The 'VE Rating' column shows that six stocks have '3-Engine' hold ratings and that 11 have '2-Engine' sell ratings, which makes it difficult to pick stocks from the transportation sector.
The next column 'Last 12-month Return%' shows that the biggest gainers over the last 12 months are: Delta Airlines up 130.1%, Swift Transport up 116% and SAIA Inc up 115.8%.The 'Forecast 1-Year Return%' column shows that all 17 stocks are projected to decline by 2.5% to 10.1% over the next 12 months. The column that is headed 'P/E Ratios' represents the trailing 12 month price-to-earnings ratios and these stocks have P/Es they are between 9.8 for Delta Airlines and 27.0 for trucker JB Hunt (JBHT). The '200-day SMA' column represents the 200-day simple moving averages and all 17 stocks are above this moving average reflecting the risk of a reversion to the mean. How to use Value Levels: If you are looking to buy or add to long positions, my buy-and-trade methodology recommends that you employ good-until-cancelled GTC limit orders to buy weakness to a value level shown in the table. The value levels followed by an 'M' apply for January only. Those followed by a 'Q' apply until the end of March. Those followed by an 'S' apply until the end of June. Those followed by an 'A' apply for all of 2014. How to use Pivots: A pivot will likely be a magnet during the time frame shown by the letter. Pivots followed by an 'M' apply for January only. Those followed by a 'Q' apply until the end of March. Those followed by an 'S' apply until the end of June. Those followed by an 'A' apply for all of 2014. If a value level or risky level is violated during its time horizon that level becomes a pivot and has an 85% chance of being re-tested during its time horizon. Follow @Suttmeier This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff
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