NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews focus on General Motors (GM) - Get Report which reports premarket Wednesday and Facebook (FB) - Get Report which reports in afterhours Wednesday.
We look at nine companies in seven sectors; three from the computer and technology sector and one each in these sectors; autos-tires-trucks, business services, construction, consumer discretionary, oils-energy and transportation.
The ValuEngine valuation warning remains in place with 77.8% of all stocks being overvalued, 47.28% by 20% or more. 15 of 16 sectors are overvalued by double-digit percentages, 11 by 21% to 27.2%.
The auto-tires-trucks sector is 26.5% overvalued with an underweight rating. Of the 96 stocks in this sector 40.6% have sell or strong sell ratings.
The business services sector is 25.5% overvalued with an equal-weight rating. Of the 236 stocks in this sector 61.4% have hold ratings.
The computer and technology sector is 24.4% overvalued with an overweight rating. Of the 1153 stocks in this sector 48% have buy or strong buy ratings.
The construction sector is 18.5% overvalued with an underweight rating. 55.7% of the 158 stocks in this sector have sell or strong sell ratings.
The consumer discretionary sector is 26.2% overvalued with an equal-weight rating. Of the 400 stocks in this sector 83% have hold ratings.
The oils-energy sector is 10.5% overvalued with an underweight rating. Of the 553 stocks in this sector 32% have sell or strong sell ratings.
The transportation sector is 26.3% overvalued with an 'avoid-source of funds rating. Of the 176 stocks in this sector 73.3% have sell or strong cell ratings.
Only two of the nine stocks in today's table have buy ratings. Five have hold ratings and two have sell ratings. My headline stocks are undervalued by 7.2% and 4.3%, while six are overvalued by 21.7% to 61.2%. One is down 38.0% over the last 12 months, while seven have gains between 22.6% and 643.4%. Only one stock is below its 200-day simple moving average with eight above which reflects the risk of reversion to the mean.
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.
($45.79) set its multi-year high at $46.52 on Aug. 2 and nearly re-tested this high on Oct. 22. The sell rated trucker has a semiannual value level at $41.77 with a weekly pivot at $46.36 and quarterly risky level at $47.52.
($13.03) broke below its 200-day SMA on July 25 and has traded between $14.45 and $12.65 since then and is below its 50-day SMA at $13.57. The maker of colorful footwear has a hold rating with a weekly pivot at $13.32 and its 200-day SMA at $15.12.
($24.66) has been moving sideways to up since trading as low as $16.46 on June 24. The buy rated maker of high performance circuits is above its 50-day and 200-day SMAs at $23.00 and $21.98 with a weekly pivot at $24.65 and semiannual risky level at $30.88.
($50.23) became a momentum stock on July 24 with a huge price gap above its 200-day SMA. The run-up began at $26.50 to a new all time high at $54.83 on Oct. 18. The hold rated social networking stock has a monthly value level at $37.55 with a weekly risky level at $57.65. The company has not been publicly traded long enough to have quarterly, semiannual or annual levels from my proprietary analytics.
($35.80) set a multi-year high at $37.97 on Sept. 24. The government bailed-out auto maker has a hold rating with a semiannual value level at $34.41, a quarterly pivot at $35.44 and a weekly risky level at $37.82.
($47.80) set a multi-year high at $50.00 on Oct. 16. The hold rated maker of navigation devices has a semiannual value level at $46.20 with a semiannual pivot at $48.10 and quarterly risky level at $49.82.
($44.04) has been trading back and forth around its 200-day SMA since June 21 and is currently above the 200-day at $40.26. The sell rated homebuilder has a monthly value level at $41.20 with a weekly risky level at $45.59.
($31.89) set a multi-year high at $35.39 on Oct. 21. The buy rated solar panel maker has a monthly value level at $31.84 with a weekly risky level at $34.887.
($203.08) set a multi-year high at $204.50 on Monday. The hold rated credit card company and new Dow component has a monthly value level at $195.75 with a weekly risky level at $213.76.
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