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9 Earnings Profiles: Humana, Merck, Time Warner

Stocks in this article: EL EXP GILD HUM LVLT MRK RDN RL TWX

NEW YORK (TheStreet) -- Today I provide my buy-and-trade pre-earnings profiles for nine companies, two who report afterhours today and seven who report premarket on Wednesday. Among those reporting on Wednesday two are in the medical sector. Will Humana (HUM) discuss how ObamaCare is affecting their bottom line? Dow component and pharmaceutical giant Merck (MRK) has been a solid performer setting a new multiyear high last week.

Two of the stocks profiled today are in the consumer discretionary sector which is 26.4% overvalued with an equal-weight rating as 85.9% of the 389 stocks in the sector have hold ratings according to www.ValuEngine.com.

Three stocks are in the medical sector which is most overvalued sector by 32.5%. The sector has an underweight rating as 32.8% of the 760 stocks in the sector have sell or strong sell ratings.

Estee Lauder (EL) ($68.28): Analysts expect the company to earn $1.06 a share premarket on Wednesday. The stock set a multi-year intraday high at $75.77 on Nov. 29 then traded down to $67.58 on Jan. 27 below its 200-day simple moving average at $69.96. The weekly chart is negative with its five-week modified moving average at $71.00 and its 200-week SMA at $53.93. The company is in the consumer staples sector which is 17.3% overvalued with an overweight rating as 55.6% of the 252 stocks in the sector have buy and strong buy ratings. Estee Lauder has a buy rating is 5.7% overvalued with a gain of 11.8% over the last 12 months. My weekly, annual and monthly pivots are $70.29, $70.99 and $71.20.

Eagle Materials (EXP) ($75.66): Analysts expect the company to earn 75 cents a share afterhours today. The stock traded to a new all-time intraday high at $81.95 on Jan. 23 with the stock above its 200-day SMA at $71.96. The weekly chart shifts to negative with a close this week below its five-week MMA at $76.95 with its 200-week SMA at $42.39. Eagle represents the construction sector which is 13.6% overvalued with an underweight rating as 48.1% of the 154 stocks in the sector have sell or strong sell ratings. The stock has a hold rating is 12% undervalued with a gain of 15.9% over the last 12 months. Monthly and semiannual value levels are $72.56 and $68.32 with weekly and quarterly risky levels at $78.11 and $93.71.

Gilead Sciences (GILD) ($78.83): Analysts expect the company to earn 49 cents a share afterhours today. The stock traded to an all-time intraday high at $84.40 on Jan. 22 and is above its 200-day SMAs at $63.14. The weekly chart is positive but overbought with its five-week MMA at $76.91 and the 200-week SMA at $3.01 is a parabolic pattern. The stock has a buy rating is 23.7% undervalued with a gain of 99.1% over the last 12 months. My semiannual value level is $63.19 with a weekly pivot at $79.35 and quarterly and monthly risky levels at $82.00 and $82.90.

Humana ($96.36): Analysts expect the company to earn 93 cents a share premarket on Wednesday. The stock set its all-time intraday high at $105.80 on Dec. 2 then traded as low as $94.20 on Jan. 29 above its 200-day SMA at $91.30. The weekly chart is negative with its five-week MMA at $97.92 and its 200-week SMA at $74.23. The stock has been downgraded to hold from buy this morning is 11.5% overvalued with a gain of 22.2% over the last 12 months. Weekly and annual value levels are $93.94 and $85.49 with an annual pivot at $99.27 and monthly and semiannual risky levels at $109.22, $111.32 and $112.88.

Level 3 Communications (LVLT) ($31.01): Analysts expect the company to earn 5 cents a share premarket Wednesday. The stock traded to a multiyear intraday high at $34.71 on Jan. 9 then traded as low as $30.86 on Monday. The weekly chart shifts to negative with a close this week below its five-week MMA at $31.88 and its 200-week SMA at $22.48. Level 3 is in the utilities sector which is 11.6% overvalued with an overweight rating as 91% of the 210 stocks in the sector have buy or strong buy ratings. The stock has a strong sell rating is 7.6% overvalued with a gain of 28.1% over the last 12 months. My annual value level is $23.42 with a semiannual pivot at $32.73 and quarterly, monthly and weekly risky levels at $33.76, $34.24 and $34.88.

Merck ($52.08): Analysts expect the company to earn 89 cents a share premarket on Wednesday. The stock traded to an multiyear intraday high at $54.10 on Jan. 27 and is well above its 200-day SMA at $48.07. The weekly chart is positive but overbought with the five-week MMA at $50.99 and the 200-week SMA at $39.95. Merck has a hold rating is 36.1% overvalued with a gain of 27.5% over the last 12 months. Annual and semiannual value levels are $49.01 and $46.40 monthly, quarterly and semiannual pivots at $51.17, $52.20 and $51.98 and annual risky at $53.40.

Radian Group (RDN) ($14.27): Analysts expect the company to lose 3 cents a share premarket on Wednesday. Radian is in the finance sector which is 17.1% with an equal-weight rating as 82.7% of the 2954 stocks in the sector have hold ratings. The provider of private mortgage insurance traded to a multiyear intraday high at $15.96 on Jan. 23 above its 200-day SMA at $13.52. The weekly chart is negative with the five-week MMA at $14.58 and the 200-week SMA at $7.32. Radian has a hold rating is 77.9% overvalued with a gain of 108.3% over the last 12 months. Semiannual value levels are $11.58 and $8.50 with weekly and monthly pivots are $14.83 and $15.10 and quarterly risky level at $16.01.

Ralph Lauren (RL) ($153.66): Analysts expect the company to earn $2.51 a share premarket Wednesday. The stock set an all-time intraday high at $192.03 on May 22 then traded as low as $152.79 on Feb. 3 below its 200-day SMA at $172.55. The weekly chart is negative with the five-week MMA at $164.01 and the 200-week SMA at $142.13. Ralph Lauren has a hold rating is 10.7% undervalued with a loss of 5.4% over the last 12 months. My annual pivot is $156.84 with monthly, weekly and annual risky levels at $162.06, $163.54 and $170.06.

Time Warner (TWX) ($61.52): Analysts expect the company to earn $1.15 a share premarket Wednesday. The stock set an all-time intraday high at $70.77 on Nov. 6 then traded as low as $61.39 on Monday below its 200-day SMA at $63.48. The weekly chart is negative but oversold with the five-week MMA at $64.66 and the 200-week SMA at $43.03. Time Warner has a hold rating is 3.6% overvalued with a gain of 22% over the last 12 months. Semiannual and annual value levels are $58.50 and $56.58 with semiannual and weekly pivots are $63.57 and $64.93 and monthly and quarterly risky levels at $69.69 and $72.77.

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

Follow @Suttmeier

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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