This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple, DuPont and Ford Top Earnings Profiles

NEW YORK (TheStreet) -- Last week was rough for stock market traders and investors as the Dow Industrial Average led the five major averages lower. Dow Industrials closed at 15,879 on Friday, 709 points below the all-time intraday high at 16,588.25 set on the last day of 2013. Dow transports set an all-time intraday high at 7591.43 last Thursday then closed Friday at 7259 down 332 points from the high in just one day.

If this downside volatility continues my pre-earnings buy-and-trade profiles become even more important as guidance for traders and investors. This week there are many companies reporting results and I begin my analysis with bellwether Apple (AAPL) which reports after the close today. Then tomorrow premarket we hear from Dow component DuPont (DD - Get Report) and automobile manufacturer Ford Motor (F - Get Report).

Stock market weakness plus a lower 30-Year Treasury bond yield reduced the percentage of stocks overvalued to a still extremely elevated 81.3% down from 85.3% from Thursday. The percentage of stocks overvalued by 20% or more declined to 44.5% from 52.7%.

The technicals for the five major averages remain overbought on their weekly charts but only the Nasdaq ended last week above its five-week modified moving average at 4105. Dow Industrials, the S&P 500, Dow transports and Russell 2000 have thus been downgraded to neutral. Weekly closes below all five-week MMAs with all 12x3x3 weekly slow stochastic readings declining below 80.00 signals the end to the bull market for stocks, and the equities bubble will finally pop.

Apple ($546.07): Analysts expect the company to earn $14.04 a share afterhours today. Apple represents the computer and technology sector which is 35.4% overvalued with an overweight rating as 51.6% of the 1125 stocks in the sector have buy or strong buy ratings according to www.ValuEngine.com. Apple ended last week fractionally below its 50-day simple moving average at $546.56 with the 200-day SMA at $482.16. The weekly chart is neutral with the stock above its five-week MMA at $540.83 with declining stochastics and its 200-week SMA at $431.96. Apple has a buy rating is 9.5% overvalued with a gain of 21.2% over the last 12 months. Weekly and annual value levels are $539.55 and $517.05 with a monthly pivot at $549.13 and an annual risky level at $586.06. To view must-see charts read my post from Friday, Apple and IBM Have Must-See Charts.

Caterpillar (CAT) ($86.17): Analysts expected the company to earn $1.28 a share premarket today. The heavy equipment company reported earnings of $1.54 share. Caterpillar represents the industrial products sector which is 25.7% overvalued with an underweight rating as 30.5% of the 338 stocks in the sector have sell or strong sell ratings. The stock traded to a 2014 high at $93.20 on Jan. 15 then slumped to $85.88 on Friday between its 200-day and 50-day SMAs at $85.39 and $87.23. The weekly chart is negative with the stock below its five-week MMA and 200-week SMA at $88.15 and $88.60 with declining stochastics. Caterpillar has a hold rating is 15.6% overvalued with a loss of 10.8% over the last 12 months. My monthly value level is $85.71 with a quarterly pivot at $87.52 and weekly and annual risky levels at $92.17, $95.79 and $97.90.

DuPont ($59.97): Analysts expect the company to earn 55 cents a share premarket Tuesday. DuPont represents the basic materials sector which is 11.7% overvalued with an underweight rating as 64.1% of the 387 stocks in the sector have sell or strong sell ratings. The stock traded to a 2014 high at $65.00 on Tuesday then declined to $59.95 on Friday between its 200-day and 50-day SMAs at $57.97 and $62.22. The weekly chart is negative with the stock below its five-week MMA at $62.20 with declining stochastics and its 200-week SMA at $49.71. DuPont has a hold rating is 16.1% overvalued with a gain of 24.8% over the last 12 months. My annual value level is $51.35 with quarterly and monthly risky levels at $62.86 and $64.09.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
APPL $0.00 0.00%
DD $71.62 -0.19%
F $15.94 -0.41%
AAPL $123.42 -0.66%
FB $83.38 0.45%

Markets

DOW 17,698.77 +20.54 0.12%
S&P 500 2,057.46 +1.31 0.06%
NASDAQ 4,874.8370 +11.4750 0.24%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs