Tracking 8 Stocks that Beat EPS but Are Underperforming

NEW YORK (TheStreet) -- With stocks challenging 52-week highs, multi-year year highs and in some cases all-time highs, it's surprising to observe that the performances of many stocks after reporting better than expected earnings have been lackluster at best.

Today I update my profiles for 11 stocks that reported quarterly results between Jan. 30 and Feb. 13. Eight reported better than expected EPS, while three missed.

On Jan. 29 I wrote, Jungle of Earnings Includes Amazon, and earnings from the stocks profiled in this post reported their quarterly results between Jan. 30 and Feb. 1.

On Tuesday I wrote, Will Cisco Befriend Investors?, and earnings from five of the eight in this post reported their quarterly results between Feb. 12 and Feb. 13.

At www.ValuEngine.com we show that 64.8% of all stocks are overvalued, which is on the cusp of a ValuEngine valuation warning. All 16 sectors are overvalued, 11 by double-digit percentages. Today's stocks are in seven sectors; aerospace is 7.1% overvalued, computer & technology is 14.4% overvalued, industrial products is 21.5% overvalued, medical is 14.3% overvalued, oils-energy is overvalued by 6.5%, retail-wholesale is 11.9% overvalued and transportation is 17.9% overvalued.

Reading the Table

OV/UN Valued: 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 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.

Trailing 12 months price-to-earnings ratio

Here are my updated buy-and-trade parameters and earnings scorecard:

Boeing ( BA) ($74.78) beat earnings estimates by 9 cents a share reporting an EPS of $1.28 on Jan. 30. Given the clouds of the Dreamliner the stock stayed range bound, while maintaining a buy rating. The weekly chart shifts to negative with a weekly close below the five-week modified moving average at $75.12. My semiannual value level lags at $59.67 with my monthly risky level at $76.40.

Qualcomm ( QCOM) ($65.45) beat EPS estimates by 14 cents a share at $1.14 per share on Jan. 30. The stock traded up to $67.44 on Jan. 31 then moved sideways to down since then. The stock has a hold rating with a positive weekly chart profile with the five-week MMA at $64.64. My annual value level is $64.58 with a monthly pivot at $66.12 and a quarterly risky level at $67.15.

Under Armour ( UA) ($48.70) beat EPS estimates by a penny earning 47 cents per share on Jan. 31. The stock popped to $51.94 for a failed test of the 200-day simple moving average at $51.80, then drifted lower since then to $48.48 yesterday. The stock has a hold rating and a neutral weekly chart profile with the stock below its five-week MMA at $49.30. My semiannual value level lags at $42.97 with a weekly pivot at $49.42 and semiannual risky level at $52.01.

United Parcel Service ( UPS) ($82.50) missed EPS estimates by 6 cents earning $1.32 per share on Jan. 31, but the stock proved to be resilient. The stock traded down to $79.00 on Feb. 1 then up to a new multi-year high at $83.08 on Feb. 12. UPS kept a buy rating during this volatility with an overbought weekly chart profile and the five-week MMA at $79.37. Stability was influenced by my semiannual pivot at $80.21 with a monthly value level at $75.82 and weekly risky level at $84.84.

Chevron ( CVX) ($115.53) missed EPS estimates by 5 cents earning $2.98 per share on Feb. 1. The stock drifted sideways since then while maintaining a buy rating with a positive weekly chart profile, and the five-week MMA at $113.59. My semiannual value level is $111.22 with a weekly pivot at $118.32, a quarterly risky level at $120.94 and annual risky levels at $122.26 and $123.08.

Merck ( MRK) ($41.15) beat EPS estimates by 2 cents earning 83 cents per share on Feb. 1. Guidance was light and the stock declined from $43.25 on Jan. 31 to $40.83 on Feb. 4 then sideways since then. The stock has maintained a buy rating with a negative weekly chart profile and the five-week MMA at $42.23. My quarterly value level is $40.81 with my semiannual risky level at $43.41.

Exxon Mobil ( XOM) ($88.67) beat EPS estimates by 20 cents earning $2.20 per share on Feb. 1. The stock traded lower even with a solid earnings report from $90.50 on Feb. 1 to $86.59 on Feb. 6. The stock has maintained a buy rating with a neutral weekly chart profile and the five-week MMA at $89.21. My semiannual value level is $74.19 with a weekly pivot at $89.85 and annual risky levels at $105.52 and $107.93.

NetGear ( NTGR) ($33.31) missed EPS estimates by 4 cents earning 46 cents per share on Feb. 12. NTGR has been a woodshed stock and took another hit on Wednesday declining from $36.50 at Tuesday's close to a low of $32.10 on Wednesday. The stock is rated hold with a negative weekly chart profile with the five-week MMA at $36.88 and the 200-day SMA at $29.60. I do not show a value level and my quarterly risky level is $38.62.

Deere ( DE) ($90.68) beat EPS estimates by 24 cents pre-market on Feb. 13 earning $1.65 per share. With light guidance the stock fell from an open at $93.69 to a day's low at $90.52. The stock remains buy rated with an overbought weekly chart and the five-week MMA at $90.42, and a weekly close below would be a technical downgrade. My quarterly value level is $81.03 with my monthly risky level at $94.86.

Cisco ( CSCO) ($21.14) beat EPS estimates by 4 cents earning 47 cents per share after the close on Feb. 13, and the stock slumped from $21.14 at the close to $20.73 in after hours trading on light guidance on its European business. The weekly chart is overbought with the five-week MMA at $20.58. My annual value level is $17.77 with a monthly pivot at $21.03 and semiannual and annual risky levels at $22.43 and $22.76.

Whole Foods Market ( WFM) ($96.90) beat EPS estimates by a penny earning 78 cents per share after the close on Feb. 13, and the stock slumped to from $96.90 at the close to $90.85 in after hours trading on missed revenue. The weekly chart is positive but a close this week below the five-week MMA at $93.87 shifts the profile to neutral. I do not have any value levels and my weekly pivot will likely be a risky level today and tomorrow.

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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