Market Focus Shifts to First-Quarter Earnings

NEW YORK ( TheStreet ) -- First-quarter earnings season shifts into a higher gear this week. Today I profile six companies that report quarterly results tomorrow, three premarket and three after the close.

Three of the stocks are components of the Dow Jones Industrial Average, which set new all-time closing and intraday highs last Thursday at 14,865.14 and 14,887.51. This week's risky level is 14,993.

I will continue to handicap earnings tomorrow and again on Wednesday to cover a total of 19 companies that investors should focus on both before and after they report quarterly results. At www.ValuEngine.com, we show that 58.6% of all stocks are overvalued and that 15 of 16 sectors are overvalued, 11 by double-digit percentages.

Given this fundamental setup, stocks that miss earnings estimates or offer cautious guidance are at risk of being taken behind to the woodshed for a share price cut.

Last Thursday, we learned that the four-week moving average for initial jobless claims remains greater than the recessionary threshold of 350,000. On Friday the stock market took in stride data showing that retail sales fell 0.4% in March with PPI down 0.6%. There was also a surprise decline in Michigan consumer sentiment to a reading of 72.3 for April when 78.5 was expected. This index remains less than the neutral 90-to-110 range.

Reading the Table

OV / UN Valued: The 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 One-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 is the 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 is the price at which to enter a GTC limit order to sell on strength.

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