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

Housing Recovery Stuck in Neutral

Lennox International (LII) ($84.48 vs. $85.08 on Dec. 31, down 0.7%) reported quarterly results premarket on Feb. 5 and beat analysts' estimates by 4 cents, earning 77 cents a share. The provider of heating and air conditioning systems opened higher but drifted back to its 50-day SMA at $84.40 well above its 200-day SMA at $73.56. The weekly chart is positive but overbought with its five-week MMA at $84.94 and its 200-week SMA at $50.78 and the chart looks like an inflated parabolic bubble. Lennox has a hold rating and is 12.1% overvalued with a gain of 43.7% over the last 12 months. Semiannual and annual value levels are $71.96, $68.66, $71.14 and $66.36 with quarterly and monthly risky levels at $90.97 and $91.32.

Masco ($20.74 vs. $22.77 on Dec. 31, down 8.9%) reports quarterly results on Feb. 10 and analysts expect the company to earn 17 cents a share. The provider of home improvement and building products traded to a multiyear intraday high at $23.60 then declined to $20.60 on Feb. 5 just below its 200-day SMA at $20.92. The weekly chart is negative with the five-week MMA at $21.75 and its 200-week SMA at $14.76. Masco has a hold rating and is 10.4% undervalued with a gain of 12.9% over the last 12 months. Semiannual value levels are $19.87 and $17.63 with a monthly pivot at $20.95 and quarterly risky level at $26.30.

Owens Corning ($37.65 vs. $40.72 on Dec. 31, down 7.5%) reports quarterly results on Feb. 12 and analysts expect the company to earn 28 cents a share. The provider of insulation, roofing and sliding traded to a 2014 high at $42.95 then declined to $36.80 on Feb. 3 below its 200-day SMA at $39.66. The weekly chart is negative with its five-week MMA at $39.14 and its 200-week SMA at $33.82. Owens has a hold rating and is 5.1% overvalued with a loss of 9.3% over the last 12 months. My monthly value level is $33.21 with semiannual and quarterly risky levels at $43.96 and $45.27.

Radian Group (RDN) ($15.19 vs. $14.12 on Dec. 31, up 7.6%) reported quarterly results premarket on Feb. 5 and matched analysts' estimates reporting a loss of 3 cents a share. The provider of private mortgage insurance traded slightly higher staying above its 200-day SMA at $13.56. The weekly chart is neutral with its five-week MMA at $14.82 and its 200-week SMA at $7.32. Radian has a sell rating and is 91.6% overvalued with a gain of 120.5% over the last 12 months. My semiannual value level is $11.58 with monthly and quarterly pivots at $15.10 and $16.01.

Vulcan Materials (VMC) ($60.19 vs $59.42 on Dec. 31, up 1.3%) reported quarterly results premarket this morning and beat EPS estimates by 11 cents earning 8 cents a share. The provider of asphalt, concrete and cement set a multiyear intraday high at $63.05 on Jan.28 and traded as low as $58.68 on Dec. 3 staying above its 200-day SMA at $53.21. The stock traded to a new high this morning at $65.40. The weekly chart is positive but overbought with its five-week MMA at $59.11 and its 200-week SMA at $44.82. Vulcan has a strong sell rating and is 23% overvalued with a gain of 6.8% over the last 12 months. Monthly and annual value levels are $54.86 and $53.54 with a quarterly pivot at $61.22 and an annual risky level at $68.53.

Weyerhaeuser ($29.07 vs $31.57 on Dec. 31, down 7.9%) reported quarterly results on Jan. 31 and matched analysts' estimates, earning 27 cents a share. The harvester of timber and real estate developer traded down to $28.84 on Feb. 5 below its 200-day SMA at $29.52. The weekly chart is negative with its five-week MMA at $30.24 and its 200-week SMA at $23.06. Weyerhaeuser has a hold rating and is 10.2% overvalued with a loss of 6.1% over the last 12 months. My semiannual value level is $24.69 with a monthly pivot at $29.02 and a quarterly risky level at $36.86.

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
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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