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TheStreet Open House

Rite Aid Was the Biggest Earnings Winner Last Week

NEW YORK (TheStreet) -- Tuesday we provide post-earnings profiles for the eight companies we covered in two posts last week. We include two Crunch the Numbers tables designed to help investors navigate stock-specific share-price volatility.

Our first table covers each stock's technicals including five important moving averages and updated readings on the 12x3x3 weekly slow stochastic for each stock.

The second table shows earnings and value levels at which to buy on weakness and risky levels at which to sell on strength.

We crunched the numbers to help you decide if and when to invest. See today's tables following these profiles.

Alcoa (AA - Get Report) ($12.86, up 1.8% since April 4): Reported earnings after the closing bell on April 8 and beat analysts' earnings per share estimates by 4 cents, earning 9 cents a share. The stock traded as high as $13.16 on April 9, staying below its multiyear intraday high at $13.18 set on April 1.

The weekly chart remains positive but overbought with its five-week modified moving average at $12.22. Semiannual and quarterly value levels are $12.33 and $9.34, with weekly and monthly risky levels at $13.00 and $13.01.

Bed Bath & Beyond (BBBY) ($64.40, down 7% since April 4): Reported earnings after the closing bell on April 9 and matched analysts' EPS estimates, earning $1.60 a share. The stock plunged below its 50-day SMA at $66.92, trading as low as $63.10 on April 11, still above the 2014 low $62.12 set on Feb. 3.

The weekly chart has been downgraded to neutral from positive with its five-week MMA at $66.83. An annual value level is $51.50 with an annual pivot at $64.99 and weekly and monthly risky levels at $68.02 and $69.31.

Fastenal (FAST) ($50.42, down 0.8% since April 8): Reported earnings before the opening bell on April 11 and beat analysts' earnings per share estimates by 1 cent, earning 38 cents a share. The stock traded in a wide trading range on April 11 between $48.63 and $52.21.

The weekly chart remains positive, with its five-week MMA at $49.02. A monthly value level is $46.05, with an annual pivot at $49.31 and semiannual and weekly risky levels at $51.13 and $52.61.

Family Dollar (FDO) ($57.17, down 2.7% since April 8): Reported earnings before the opening bell on April 10 and missed analysts' earnings per share estimates by 10 cents earning 80 cents a share. The stock traded up to $60.20 after announcing cost cutting then dropped to a 2014 low at $55.69 on April 11.

The weekly chart remains negative but oversold with its five-week MMA at $59.33. The stock is below its 200-week SMA at $58.31. An annual value level is $49.44, with a weekly pivot at $57.17 and monthly, quarterly and annual risky levels at $62.39, $63.51 and $64.81.

Pier 1 Imports (PIR) ($17.79, down 2.6% since April 8): Reported earnings before the opening bell on April 10 and beat analysts' earnings per share estimates by 1 cent, earning 41 cents a share. The stock traded as high as $19.39 on April 10, then as low as $17.41 on April 11.

The weekly chart remains negative but oversold, with its five-week MMA at $18.68. It has an annual value level of $15.10, with a monthly pivot at $17.27 and weekly and quarterly risky levels at $19.08 and $22.27.

Rite Aid Corp (RAD - Get Report) ($7.10, up 16.2% since April 8): Reported earnings before the opening bell on April 10 and beat analysts' earnings per share estimates by 5 cents, earning 10 cents a share. The stock popped as high as $7.39 on April 10 then traded as low as $6.73 on April 11.

The weekly chart is neutral with its five-week MMA at $6.58. My quarterly value level is $5.16 with weekly and monthly risky levels at $7.41 and $7.94.

Constellation Brands (STZ) ($78.00, down 7.5% since April 4): Reported earnings before the opening bell on April 9 and beat analysts' earnings per share estimates by 5 cents, earning 81 cents a share. The stock traded as high as $85.40 on April 9, staying below its all-time parabolic intraday high at $85.91 on April 1.

The weekly chart shifted to negative, with its five-week MMA at $80.25. Semiannual value levels are at $58.42 and $49.57, with weekly and quarterly risky levels at $83.84 and $85.81.

WD 40 (WDFC) ($70.69, down 6.6% since April 4): Reported earnings after the closing bell on April 8 and matched analysts' earnings per share estimates, earning 81 cents a share. The stock opened April 9, trading as high as $77.04 then as low as $70.04 on April 10.

The weekly chart shifted to negative, with its five-week MMA at $73.15 and the 200-week SMA at $49.51. Semiannual and annual value levels are $68.50 and $65.00 with weekly and quarterly risky levels at $77.06 and $77.66.

Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from oversold, rising, overbought, declining or flat.

Interpretations: Stocks below a moving average are listed in red.

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon (even Apple declined to its 200-week SMA in June 2013).

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six to 12 month horizon. (even Apple tested or crossed its 200-day SMA in nine of the last 10 years)

Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell

This table presents the EPS reports and where to buy on weakness and where to sell on strength.

EPS Date is the day the company reports their quarterly results.

EPS Estimate is the earnings per share estimate from Wall Street analysts.

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

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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