NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews focus on six companies in three sectors that report quarterly results on Wednesday including agricultural and construction equipment maker Deere (DE) - Get Deere & Company Report and the competitor of Dow component Home Depot (HD) - Get Home Depot, Inc. (HD) Report, home improvement company Lowes (LOW) - Get Lowe's Companies, Inc. (LOW) Report.
The six stocks include four in the retail-wholesale sector, and one each in the consumer staples sector and the industrial products sector.
The consumer staples sector is 23.9% overvalued with an overweight rating. Of the 260 stocks 41.9% in this sector have buy or strong buy ratings.
The industrial products sector is 28.6% overvalued with an underweight rating. Of the 346 stocks 47.1% in this sector have sell or strong sell ratings.
The retail-wholesale sector is 28.6% overvalued with an overweight rating. Of the 345 stocks 80.0% in this sector have buy or strong buy ratings.
Four of the stocks in today's table have buy ratings and two have hold ratings. Two stocks are undervalued by 3.7% and 8.8%. Four are overvalued by 6.1% to 33.7%. One stock is down 3% over the last 12 months while five have gains of 26.9% to $132% over the 12 months. Two are below their 200-day simple moving averages with four above which reflects the risk of reversion to the mean.
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Reading the Table
Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.
Last 12-Month Return (%):
Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return:
Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.
A level between a value level and risky level that should be a magnet during the time frame noted.
Price at which to enter a GTC limit order to sell on strength.
($83.66) set its 52-week low at $79.50 on June 24 with the stock below its 200-day SMA since June 11 with that average overhead at $85.36. The hold rated construction and agricultural equipment company is above its 50-day SMA at $82.99 with my weekly value level at $81.46 and quarterly risky level at $99.43.
Green Mountain Coffee
($63.41) has been below its 200-day SMA at $67.50 since Oct. 17. The buy rated gourmet coffee producer has an annual value level at $59.34 with a semiannual pivot at $63.42 and semiannual risky level at $66.94.
($50.89) set a multi-year high at $52.08 on Friday. The buy rated home improvement retailer has a monthly value level at $50.05 with a weekly pivot at $50.92 and quarterly risky level at $52.88.
($64.30) set a multi-year high at $65.37 on Thursday. The buy rated retailer of women's intimate apparel has a quarterly value level at $60.00 with a semiannual pivot at $63.35.
($108.91) set a multi-year high at $114.72 on Aug. 6 then traded as low as $103.80 on Oct. 2. The hold rated maker of jellies and jams has a semiannual value level at $102.37 with a quarterly pivot at $109.33 and monthly risky level at $116.39.
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($15.48) set a multi-year high at $17.30 on Aug. 13 then traded as low as $13.72 on Sept. 3, which was just below the 200-day SMA. The rebound to $16.67 into Nov. 1 filled the gap to the Aug. 19 low at $16.39. The buy rated retailer of office supplies has a quarterly value level at $14.40 with a weekly pivot at $16.14 and annual risky level at $16.68.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier is the chief market strategist at AlphaPlus Analytics in addition to 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