5 Earnings Reports Reflect Life In An RV

NEW YORK (TheStreet) -- RV sales have been on the rise as an alternative to buying or renting a home. While travelling from location to location the 'on the road again' family will likely be wearing athletic footwear and apparel, and if in the southeast may have shopped at the discount retailer profiled today. An in-RV activity while on and off road will most likely be on a device loaded with entertainment software. Finally, as the family drives by a farm they are likely to experience the healthy aroma of fertilizer.

Today I profile five companies in this scenario who report quarterly results pre-market on Thursday; three from the retail-wholesale sector, one in the basic industry sector, and one nebulously in the construction sector.

At www.ValuEngine.com we show that 64% of all stocks are overvalued. The retail-wholesale sector is 18.1% with the basic industry sector 4.4% undervalued and the construction industry 22.7% overvalued.

With three of five stocks retail-oriented, weakening consumer confidence could be a factor in these earnings reports. On Tuesday we learned that the Conference Board's reading on Consumer Confidence plunged to 59.7 in March down from 68.0 in February, as this index moves further below the neutral 90 to 110 range for this measure. Here's the chart courtesy of Advisor Perspectives.

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.

Finish Line ( FINL) ($18.37): One of the largest mall-based retailers of athletic footwear and apparel is expected to earn 75 cents per share. The stock has a buy rating, is 6.5% undervalued and is down 27.2% over the last 12 months. The stock is below its 200-day simple moving average at $20.19 with an annual value level at $13.30, a weekly pivot at $18.76 and monthly risky level at $19.49. The weekly chart profile is neutral with the stock between its 200-week SMA at $17.25 and its five-week modified moving average at $18.52.

Fred's ( FRED) ($14.22): A general discount retailer serving the southeast part of the country is expected to earn 19 cents per share. The stock has a buy rating, is 4.9% overvalued and is down 4.8% over the last 12 months. The stock is above its 200-day SMA at $13.88 with a quarterly value level at $13.74, a semiannual pivot at $14.54 and semiannual risky level at $15.59. The weekly chart profile is positive with the stock above its five-week MMA and 200-week SMA at $13.77 and $12.88.

GameStop ( GME) ($26.36)" The largest video and entertainment software retailer is expected to earn $2.10 per share. The stock has a buy rating, is 1.8% undervalued and is up 10.8% over the last 12 months. The stock is above its 200-day SMA at $22.22 with a semiannual value level at $23.89, a weekly pivot at $26.61 and monthly risky level at $26.88. The weekly chart profile is positive with the stock above its five-week MMA and 200-week SMA at $25.27 and $22.45.

Mosaic ( MOS) ($58.73): A major producer of phosphate and potash crop nutrients and is expected to earn 89 cents per share. The stock has a hold rating, is 2.6% undervalued and is up just 0.2% over the last 12 months. The stock is above its 200-day SMA at $56.65 with a weekly value level at $57.66 with a monthly pivot at $59.68 and semiannual risky level at $77.75. The weekly chart is negative with the stock below its five-week MMA at $59.76 with the 200-week SMA at $58.67.

Winnebago ( WGO) ($22.30): The leading U.S. manufacturer of recreational vehicles is expected to earn 16 cents per share. The stock has a strong sell rating and is thus a source of funds, is 47.4% undervalued and is up 126.4% over the last 12 months. The stock is well above its 200-day SMA at $14.18 with a weekly value level at $20.38 and the March 2008 high at $24.14. The weekly chart profile is positive but overbought with the five-week MMA at $20.36.

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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