11 Stocks Reporting Earnings this Week

NEW YORK (TheStreet) -- Today I am profiling 11 stocks in seven sectors with a concentration in retail-oriented companies. At www.ValuEngine.com we show that eight of the 11 stocks have buy ratings and the other three with hold ratings.

We begin the week with 64% of all stocks overvalued, which is just a percent away from a ValuEngine Valuation Warning. We show 15 of 16 sectors overvalued. The overvalued sectors are; computer and technology by 14.3%, construction by 26.4%, consumer discretionary by 8.9%, consumer staples by 23.8%, finance by 18.0% and retail-wholesale by 11.2%. The basis industry sector is the only undervalued sector by just 0.9%.

All major averages have overbought readings for their 12x3x3 weekly slow stochastic readings, which is my favored measure of technical momentum.

When the fundamentals are overvalued and the weekly technicals are overbought, investors should be reducing allocations to stocks on strength. Investors who are long stocks I profiled today pre-earnings should thus employ a buy-and-trade strategy that results in raising cash on strength to risky levels.

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.

Value Level: 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: Price at which to enter a GTC limit order to sell on strength.

Here are my buy-and-trade strategies for today's earnings stocks:

Reporting before the open on Wednesday Toll Brothers ( TOL) ($37.08) is expected to earn 11 cents per share. The stock has a buy rating and set a multi-year high at $38.36 on Jan. 29. Toll Brothers is 25.1% overvalued and has gained 57.3% over the past 12 months and has an elevated trailing 12 months price-to-earnings ratio at 44.9. The weekly chart profile is positive with the five-week modified moving average at $35.59. My annual value level is $31.95 with a monthly pivot at $38.70 and weekly risky level at $39.40.

Reporting before the open on Thursday:

Dillards ( DDS) ($87.47) is expected to earn $2.90 per share. The stock has a buy rating and set a multi-year high at $89.98 on Dec. 3. Dillards is 15.1% overvalued and has gained 90.2% over the past 12 months. The weekly chart profile is positive with the five-week MMA at $84.59. My quarterly value level is $83.66 with a monthly pivot at $87.16 and semiannual risky level at $88.33.

Wal-Mart Stores ( WMT) ($69.30) is expected to earn $1.57 per share. The stock has a buy rating and set a multi-year high at $77.60 back on Oct 16. The weekly chart profile is neutral with the five-week MMA at $69.91. My semiannual value level is $60.16 with a quarterly pivot at $70.08 and monthly risky level at $77.67.

Reporting after the close on Thursday:

Hewlett Packard ( HPQ) ($16.79) is expected to earn 71 cents per share. The stock has a buy rating and set a multi-year low at $11.35 on Nov. 20. Hewlett Packard is 16.6% undervalued and is down 40.7% over the past 12 months with a single-digit trailing 12 months P/E at 4.4. The weekly chart profile is positive but overbought with the five-week MMA at $16.11. My monthly value level is $9.85 with a weekly pivot at $18.10 and semiannual risky level at $24.31.

Nordstrom ( JWN) ($55.40) is expected to earn $1.34 per share. The stock has a buy rating and set a multi-year high at $58.44 on Sept 12. The weekly chart profile is positive with the five-week MMA at $55.00. My annual value level is $46.41 with a weekly pivot at $57.34 and quarterly risky level at $58.69.

Mohawk Industries ( MHK) ($107.80) is expected to earn 94 cents per share. The stock has a hold rating and set a multi-year high at $108.92 on Feb 15. Mohawk is 26.7% overvalued and has gained 62.2% over the past 12 months and has an elevated trailing 12 months P/E at 28.1. The weekly chart profile is positive but overbought with the five-week MMA at $98.55. My monthly value level is $98.92 with weekly risky level at $108.06.

Monster Beverage ( MNST) ($51.08) is expected to earn 41 cents per share. The stock has a buy rating and set a multi-year low at $39.99 on Nov. 8. The weekly chart profile is neutral with the five-week MMA at $49.33. My weekly value level is $46.99 with a semiannual pivot at $53.96 and semiannual risky level at $59.63.

Marvell Technology Group ( MRVL) ($9.35) is expected to earn 8 cents per share. The stock has a hold rating and set a multi-year low at $6.98 on Jan. 27. Marvell is 21.1% undervalued and has declined 41.0% over the past 12 months. The weekly chart profile is positive with the five-week MMA at $8.93. My semiannual value level is $9.12 with an annual risky level at $12.38.

Newmont Mining ( NEM) ($43.27) is expected to earn $1.00 per share. The stock has a hold rating and set a multi-year low at $42.55 Jan. 28. Newmont is 21.3% undervalued and has declined 25.4% over the past 12 months. The weekly chart profile is neutral with the five-week MMA at $44.74. I do not show a value level with a weekly pivot at $44.34 and quarterly risky level at $45.28.

Public Storage ( PSA) ($151.26) is expected to earn $1.77 per share. The stock has a buy rating and set a multi-year high at $157.95 on Feb 11. The weekly chart profile is positive but overbought with the five-week MMA at $150.50. My semiannual value level is $146.96 with an annual pivot at $149.89 and weekly risky level at $155.91.

Reporting before the open on Friday Abercrombie & Fitch ( ANF) ($50.96) is expected to earn $1.93 per share. The stock has a buy rating with a positive but overbought weekly chart profile with the five-week MMA at $48.78. My monthly value level is $46.97 with a weekly pivot at $51.56 and annual risky level at $58.63.

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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