Retail Earnings at the Mall

NEW YORK ( TheStreet) -- As the third quarter earnings season winds down it's time to focus on retailers found in many shopping malls around the country. The nine retailers I profile today sell apparel, shoes sporting goods, home furnishings or computer games. All nine stocks have buy ratings according to www.ValuEngine.com and seven are trading above their 200-day simple moving averages.

On Monday I profiled eight larger retailers in Wal-Mart, Target, Home Depot Report Earnings This Week. Each of these stocks are also buy rated and Home Depot ( HD) reported their quarterly results pre-market on Tuesday. The home improvement giant comfortably beat earnings estimates on both the top and bottom line. The stock set a new multi-year high at $64.44 in reaction to this report, so the stock continues its mojo run with an overbought weekly chart. As long as closes are above my monthly pivot at $62.76 the upside is to its all time bubble top of $70 set in April 2000.

All nine stocks I profile today are in the retail-wholesale sector which is 4.3% overvalued according to ValuEngine. Apparel and shore retailers are 3.5% undervalued and miscellaneous/diversified stores are 11.2% overvalued.

Reading the Table

OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: 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 twelve 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 twelve months. Stocks with a black number in the Table are projected to move higher by that percentage over the next twelve months.

Value Level: The 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.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC limit order to sell on strength.

Investors and traders should employ a buy-and-trade strategy between value level and risky level.

Retailers reporting earnings results after the close today:

Hot Topic ( HOTT) ($8.50): Has a buy rating with an elevated price-to-earnings ratio. The stock is below its 200-day simple moving average at $9.38. The weekly chart is negative with the five-week modified moving average at $8.83 and the 200-week SMA at $7.49.

Limited Brands ( LTD) ($47.31): Has a buy rating with a reasonably elevated P/E and is above its 200-day SMA at $47.09. The stock set a multi-year high at $52.20 on Sept. 21. The weekly chart profile is negative with the five-week MMA at $48.02 and the 200-week SMA at $30.50.

Williams-Sonoma ( WSM) ($46.05): Has a buy rating with a reasonable P/E and is above its 200-day SMA at $38.80. The weekly chart profile is overbought with the five-week MMA at $45.05 and the 200-week SMA at $29.51.

Retailers reporting earnings results pre-market Thursday:

Buckle ( BKE) ($47.68): Has a buy rating with a reasonable P/E and is above its 200-day SMA at $43.51. The stock tried to trade above $50 in March and April and could not and tested $49.50 on Nov. 7. The weekly chart shifts to positive with a close this week above its five-week MMA at $45.79 with the 200-week SMA at $36.38.

Gamestop ( GME) ($23.26): Has a buy rating with a favorable P/E and is above its 200-day SMA at $20.87. The weekly chart is overbought with the five-week MMA and the 200-week SMA converged at $22.46 and $22.59.

Childrens Place ( PLCE) ($57.57): Has a buy rating with a reasonable P/E and is above its 200-day SMA at $51.89. The stock set a multi-year high at $62.24 on Nov. 6. The weekly chart is negative with the five-week MMA at $58.51 and the 200-week SMA at $43.07.

Retailers reporting earnings results after the close Thursday:

Gap ( GPS) ($33.69): Has a buy rating with a reasonable P/E and is above its 200-day SMA at $29.45. The stock set a multi-year high at $37.85 on Oct. 5. The stock has a negative weekly chart profile with the five-week MMA at $34.78 and the 200-week SMA at $21.34.

Retailers reporting earnings results pre-market Friday.

Foot Locker ( FL) ($32.62): Has a buy rating with a reasonable P/E and is above its 200-day SMA at $31.94. The stock set a multi-year high at $37.65 on Sept. 21. The stock has a negative weekly chart profile with the five-week MMA at $33.98 and the 200-week SMA is $19.23.

Hibbett Sports ( HIBB) ($54.33): Has a buy rating with an elevated P/E and is below its 200-day SMA at $56.25. The stock set a multi-year high at $63.39 on Aug. 8. The stock has a negative weekly chart profile with the five-week MMA at $55.72 and the 200-week SMA is $34.00.

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 has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

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