Apple, McDonald's Headline Earnings Wednesday

NEW YORK (TheStreet) -- Today I profile another five Dow components and four other companies that report quarterly results on Wednesday and Thursday. Included today is my latest update on Apple (AAPL) which reports tomorrow after the close. On Monday, I profiled nine stocks that report quarterly results today in How to Trade the Big Stocks Reporting Earnings Tuesday.

At www.ValuEngine.com we show that 41.4% of all stocks are undervalued, and that all 16 sectors are overvalued. Here are the latest sector readings. Note that 12 sectors have elevated trailing 12 months price-to-earnings ratios.

Among today's nine companies one is rated strong buy, five are rated buy and three are rated hold, five are undervalued by 0.5% to 32.0% and four are overvalued by 6.1% to 9.1%. Only two are down over the last 12 months, and all seven of the winners show double-digit gains of 15.0% to 41.6%.

All are expected to be higher 12 months from now with projected gains of between 3.3% and 12.2%. The trailing 12 months P/E range from 10.4 to 24.4. We show 5 of 9 above their 200-day simple moving averages reflecting the downside risk of a reversion to the mean.

Reporting before the open on Wednesday McDonald's ( MCD) ($92.26) is expected to earn $1.33 per share. MCD set a multi-year high at $102.22 on Jan. 20, 2012, then a 52-week low at $83.31 on Nov. 16 with the stock above its 200-day SMA at $90.37. The daily chart shows an overbought condition and the weekly chart is positive with the five-week modified moving average at $89.77. The stock has a buy rating with my monthly value level at $80.05 with a weekly pivot at $92.56 and semiannual risky level at $96.07.

Reporting before the open on Wednesday United Technologies ( UTX) ($86.95) is expected to earn $1.02 per share. UTX is approaching its 52-week high at $87.50 set on March 15, 2012 after setting a 52-week low at $70.71 on June 5, 2012. UTX is above its 200-day SMA at $78.17. The daily chart shows an extremely overbought condition and the weekly chart is positive and will be overbought this week with the five-week MMA at $82.79. The stock has a buy rating with my quarterly value level at $80.70 with a weekly pivot at $87.72 and annual risky level at $88.74.

Reporting after the close on Wednesday Apple ( AAPL) ($500.00) is expected to earn $13.47 per share up from $13.43, the estimate posted last week, which is surprising given recent share price weakness. Apple set an all time high at $705.07 on Sept. 21 then traded as low as $483.38 last week with the stock below its 200-day SMA at $594.45. The daily chart is negative with the weekly chart oversold and with the five-week MMA at $530.09. The stock has a buy rating with a weekly value level at $473.95 with my annual pivot at $510.64 and monthly risky level at $604.86.

Reporting before the open on Thursday 3M ( MMM) ($98.74) is expected to earn $1.41 per share and set a multi-year at $98.80 on Friday and the stock is above its 200-day SMA at $90.23. The daily chart is extremely overbought and the weekly chart is positive with the five-week MMA at $94.20. The stock has a hold rating with my monthly value level at $91.64 with a weekly pivot at $98.33 and semiannual risky level at $111.34.

Reporting before the open on Thursday Union Pacific ( UNP) ($132.49) -- is expected to earn $2.16 per share. UNP set a multi-year high at $132.52 on Friday with the stock above its 200-day SMA at $119.38. The daily chart is extremely overbought with a positive weekly chart and the five-week MMA at $127.31. The stock has a strong buy rating with my monthly value level at $129.94 with a weekly pivot at $132.92 and semiannual risky level at $143.14.

JB Hunt Transport ( JBHT) ($63.08) -- is expected to earn 70 cents per share. JBHT set a multi-year high at $63.23 on Friday with the stock above its 200-day SMA at $56.51. The daily chart is positive and the weekly chart is overbought with the five-week MMA at $60.07. The stock has a buy rating with my weekly value level at $60.68 with a quarterly pivot at $61.22 and semiannual risky level at $64.28.

Reporting after the close on Thursday Cirrus Logic ( CRUS) ($29.39) -- is expected to earn $1.34 per share. CRUS set an all time high at $45.49 on Sept. 7 then fell to $25.31 on Dec. 14 and is now below its 200-day SMA at $31.73. The daily chart is neutral and the weekly chart is oversold with the five-week MMA at $29.79. The stock has a hold rating with my weekly value level at $26.72 and quarterly risky level at $32.35.

Reporting after the close on Thursday AT&T ( T) ($33.44) -- is expected to earn 47 cents per share down from 48 cents estimate of last week. AT&T set a multi-year high at $38.58 on Sept. 21 and is below its 200-day SMA at $34.90. The daily chart is negative and the weekly chart is neutral with the five-week MMA at $34.13. The stock has a hold rating with my semiannual value level at $31.76 with a weekly risky level at $35.08.

Reporting after the close on Thursday Microsoft ( MSFT) ($27.25) -- is expected to earn 75 cents per share. MSFT is well below its multi-year high at $32.95 set on March 16, 2012 and is below its 200-day SMA at $29.39. The daily chart is positive and the weekly chart is oversold with the five-week MMA at $27.19 and the 200-week SMA at $26.96. The stock has a buy rating with my weekly value level at $26.07 with a quarterly pivot at $27.26 and annual risky level at $27.92.

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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