9 Previews: Jungle of Earnings Includes Amazon

NEW YORK (TheStreet) -- Profiles of nine stocks that report their Q4 quarterly earnings this week, including five Dow components are examined below. These stocks represent a jungle of activity in seven overvalued sectors.

The most important earnings report is Amazon ( AMZN), an obvious momentum stock with a growth story. Amazon traded to a new all-time high at $284.72 last Friday, Jan 25.

Stocks are approaching dangerous overvalued readings according to www.ValuEngine.com. This morning we show that 62.4% of all stocks are overvalued, and as I explained on Jan. 25 in Market Hasn't Peaked a reading of 65% and higher is a warning for the stock market. Only 37.6% are undervalued and only 14.7% of these are undervalued by 20% or more. This reflects limited additional upside for the stock market.

ValuEngine also shows that all 16 sectors are overvalued, nine by double-digit percentages. The seven sectors represented by the stocks profiled here are overvalued: aerospace by 6.8%, computer & technology by 15.7%, consumer discretionary by 9.2%, medical by 16.0%, oils-energy by 6.5%, retail-wholesale by 15.8% and transportation by 24.9%.

Reporting before the open on Tuesday Pfizer ( PFE) ($26.84) is expected to earn 44 cents per share. PFE has a buy rating and set a new multi-year high at $27.30 on Jan. 24. The daily chart shows a negative divergence in momentum and the weekly chart is positive with the five-week modified moving average at $25.91. The stock has a buy rating and is 30.4% overvalued with a monthly value level at $25.47 and a quarterly pivot at $27.13.

Reporting after the close on Tuesday Amazon ( AMZN) ($276.04) is expected to earn 29 cents per share. AMZN has a hold rating, is 33.9% overvalued with a ludicrous 12-month trailing price-to-earnings at 776.5, and set a new all-time high at $284.72 on Friday. The daily chart is overbought, as is the weekly chart with the five-week MMA at $262.09. My quarterly value level is $255.75 with a weekly pivot at $275.00 and semiannual risky level at $305.64.

Reporting before the open on Wednesday Boeing ( BA) ($74.00) is expected to earn $1.19 per share. BA has a buy rating and is below its 52-week high at $78.02 set on Jan 4. The daily chart is negative and the weekly chart shifts to negative with a close this week below the five-week MMA at $74.87. My monthly value level is $68.59 with a weekly pivot at $76.27 and a quarterly risky level at $79.34.

Reporting after the close on Wednesday Qualcomm ( QCOM) ($63.67) is expected to earn $1.00 per share. QCOM has a buy rating and is trading between its March 27, 2012 high at $ 68.87 and its July 17, 2012 low at $53.09. The daily chart is negative with a positive weekly chart and the five-week MMA at $63.08. My monthly value level is $56.74 with a weekly pivot at $62.94 and annual risky level at $64.58.

Reporting before the open on Thursday Under Armour ( UA) ($47.91) is expected to earn 46 cents per share. UA has a hold rating and set a multiyear high at $60.96 on Sept. 14. The daily chart is positive with an oversold weekly chart, and the five-week MMA at $48.96. The stock has a hold rating with my weekly value level at $45.30 and monthly risky level at $54.86.

Reporting before the open on Thursday United Parcel Services ( UPS) ($82.45) is expected to earn $1.38 per share. UPS has a buy rating and set a multiyear high at $82.76 on Friday, Jan. 25. The daily chart is extremely overbought with a positive weekly chart and the five-week MMA at $77.07. My semiannual value level is $80.21 with a weekly pivot at $80.96 and no risky levels.

Reporting before the open on Friday Chevron ( CVX) ($116.04) is expected to earn $3.03 per share. CVX set its multiyear high at $118.53 on Sept. 21. The daily chart is extremely overbought with a positive weekly chart and the five-week MMA at $111.47. The stock has a buy rating with my semiannual value level at $111.22 with a weekly pivot at $116.72 and quarterly risky level at $120.94.

Reporting before the open on Friday Merck ( MRK) ($42.93) - is expected to earn $0.81 per share. MRK has a buy rating and set its multiyear high at $48.00 on Oct. 18. The daily chart is positive with a positive weekly chart and the five-week MMA at $43.09. My weekly value level is $41.35 with a semiannual pivot at $43.41 and monthly risky level at $45.97.

Reporting before the open on Friday Exxon Mobil ( XOM) ($91.11) is expected to earn $1.99 per share. XOM has a buy rating and set a new multiyear high at $93.67 Oct. 19. The daily chart is extremely overbought with a positive weekly chart and the five-week MMA at $89.41. My weekly value level is $88.09 without a quarterly risky level at $95.71.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article was written 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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