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Dow Stocks IBM and United Technologies Up Next on Earnings

NEW YORK (TheStreet) - Earnings season picks up the pace this week and today I provide my pre-earnings buy-and-trade profiles for nine companies that report quarterly results in afterhours on Tuesday and premarket on Wednesday.

Four of the nine companies are in the computer and technology sector, which is 36.5% overvalued with an overweight rating as 52.1% of the 1126 stocks in the sector have buy or strong buy ratings. Among the buy-rated names is Dow component International Business Machines (IBM - Get Report) whose stock set a multiyear low at $172.57 on Oct. 17 following weaker-than-expected third-quarter earnings,

One company is in the medical sector, which has an equal-weight rating as 56.3% of the 764 stocks in the sector have hold ratings. Only 7.2% have buy ratings and 32.1% have sell ratings.

Two are in the multi-sector conglomerates sector which is 32.3% overvalued with an overweight rating as 54.9% of the 51 stocks in the sector have buy ratings. Among the buy rated stocks is Dow component United Technologies (UTX - Get Report), which set a new all-time intraday high at $114.71 on Jan. 10.

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One company is in the retail-wholesale sector which is 23.4% overvalued with an overweight rating as 82.8% of the 343 stocks in the sector have buy or strong buy ratings.

One is in the transportation sector, which is 33.3% overvalued with an underweight rating as 72.9% of the 170 stocks in the sector have sell or strong sell ratings. Only 4.7% have buy ratings.

Abbott Labs (ABT) ($39.40) - Analysts expect the company to earn 58 cents a share premarket on Jan. 22. The medical device company traded to an all-time intraday high at $39.86 on Jan. 17 with its 200-day simple moving average at $36.39. The weekly chart is positive but overbought with its five-week modified moving average at $38.33 and its 200-week SMA at $28.90. Abbott has a hold rating and is 8.2% overvalued with a gain of 20.2% over the last 12 months. My monthly value level is $35.55 with a weekly pivot at $38.49 and quarterly and semiannual risky levels at $41.52 and $44.91.

Advanced Micro Devices (AMD) ($4.18) - Analysts expect the company to earn 6 cents a share in afterhours today. The semiconductor company set its 2014 high at $4.60 on Jan. 15 then to $4.11 into Jan. 17 in sympathy with the drop in Intel (INTC)shares. AMD is well above its 50-day and 200-day SMAs at $3.72 and $3.68. The weekly chart is positive with its five-week MMA at $3.88 and its 200-week SMA as a resistance at $5.69. AMD has a buy rating and is 25% undervalued with a gain of 52.6% over the last 12 months. My quarterly value level is $2.98 with weekly and monthly risky levels at $4.44 and $4.66.

Cree Inc (CREE) ($62.50) - Analysts expect the company to earn 31 cents a share in afterhours today. The semiconductor company that focuses on solid-state lighting began 2014 trading back and forth around its 200-day SMA at $61.66 with the 50-day SMA as a support at $59.15. The weekly chart is positive with its five-week MMA at $61.61 and its 200-week SMA at $45.94. Cree has a hold rating and is 29.6% overvalued with a gain of 91.8% over the last 12 months. My annual value level is $55.64 with semiannual, weekly and monthly risky levels at $64.80, $65.63 and $66.39.

Brinker (EAT) ($46.14) - Analysts expect the company to earn 58 cents a share premarket on Jan. 22. The parent of restaurants including Chili's and Macaroni Grill traded to an all-time intraday high at $47.85 on Nov. 22 and has traded back and forth around its 50-day SMA at $46.03 so far in 2014 with its 200-day SMA at $41.86. The weekly chart shifts to negative given a close this week below its five-week MMA at $45.50 with its 200-week SMA at $28.92. Brinker has a buy rating and is 15.5% overvalued with a gain of 38.7% over the last 12 months. My weekly value level is $45.91 with a monthly pivot at $46.31 and semiannual and quarterly value levels at $47.64 and $47.91.

IBM ($190.09) - Analysts expect the company to earn $6.01 a share afterhours today. The technology giant has been below its 200-day SMA since June 20 and traded as low as $172.57 on Oct. 17 and on Jan. 17 tested its 200-day SMA now at $190.72 with its 50-day SMA as support at $181.96. The weekly chart is positive with its five-week MMA at $184.28 with its 200-week SMA at $176.19 which was tested in October and December. IBM has a buy rating and is 5.9% undervalued with a loss of just 1.8% over the last 12 months. My weekly, monthly and annual value levels are $185.22, $174.27 and $170.81 with quarterly and annual risky levels at $209.00 and $210.61.

Norfolk Southern (NSC)($88.99) - Analysts expect the company to earn $1.50 a share premarket on Jan. 22. The railroad traded to an all-time intraday high at $93.17 on Dec. 26 and tracked CSX Corp (CSX) lower to $87.14 on Jan. 16 ending the week on the cusp of its 50-day SMA at $89.01 with the 200-day SMA at $79.78. The weekly chart is positive but overbought with its five-week MMA at $88.99 and its 200-week SMA at $69.13. Norfolk has a hold rating and is 22.4% overvalued with a gain of 34.9% over the last 12 months. Monthly and annual value levels are $85.09, $84.81 and $82.78 with weekly and semiannual risky levels at $92.86, $93.26 and $99.03.

Texas Instruments (TXN) ($43.45) - Analysts expect the company to earn 47 cents a share afterhours today. The semiconductor company traded to a multiyear intraday high at $44.09 on Dec. 31 and is currently above its 50-day SMA at $42.80 with the 200-day SMA at $39.16. The weekly chart is positive but overbought with its five-week MMA at $42.88 with its 200-week SMA at $32.02. The stock has a buy rating and is 44.7% overvalued with a gain of 31.1% over the last 12 months. Quarterly and semiannual value levels are $41.82, $41.39 and $40.60 with a weekly pivot at $43.64 and a monthly risky level at $44.09.

Textron Inc (TXT) ($36.10) - Analysts expect the company to earn 61 cents a share premarket on Jan. 22. The multi-industry conglomerate spiked to a multiyear intraday high at $37.43 on Dec. 20 then consolidated to a low of $34.66 on Jan 13. The weekly chart is positive but overbought with its five-week MMA at $34.52 with its 200-week SMA at $24.58. The stock has a buy rating and is 42.7% overvalued with a gain of 33.3% over the last 12 months. Monthly and semiannual value levels are $34.36 and $32.73 with semiannual, weekly and quarterly risky levels at $37.89, $38.11 and $39.43.

United Technologies ($114.21) - Analysts expect the company to earn $1.53 a share premarket on Jan. 22. The parent of several companies including, Pratt & Whitney aircraft engines, Carrier heating and air conditioning, Otis elevator and Sikorsky helicopters traded to an all-time intraday high at $114.71 on Jan. 10 above its 50-day SMA and 200-day SMAs at $110.64 and $102.93. The weekly chart is positive but overbought with its five-week MMA at $111.73 with its 200-week SMA at $83.51. The stock has a buy rating and is 16% overvalued with a gain of 32.2% over the last 12 months. Annual and semiannual value levels are $104.87 and $104.66 with quarterly and semiannual pivots at $113.70 and $112.24 and monthly risky level at $118.94.

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

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This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

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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