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.
The six companies I cover today represent five overvalued sectors.Those reporting premarket on Tuesday: Goldman Sachs ( GS) ($149.12) is a hold-rated stock in the finance sector, which is 16.5% overvalued. The stock has been moving sideways to down since setting a 52-week high of $159.00 on Feb. 19. GS tested its 50-day simple moving average (SMA) at $150.26 last week. The weekly chart profile is neutral with the stock above its five-week modified moving average (MMA) at $147.64 and its 200-week SMA at $138.21. My weekly value level is $144.59 and my monthly risky level is at $161.11. Coca-Cola ( KO) ($41.08) is a buy-rated Dow component in the consumer staples sector which is 18.0% overvalued. The stock set a multiyear high at $41.41 last Thursday vs. its all time high of $44.47 set in July 1998. The weekly chart profile is positive but overbought with the five-week MMA at $39.60. My monthly value level is $36.15 with a quarterly pivot at 41.53 and semiannual risky level at $42.26. Johnson & Johnson ( JNJ) ($82.74) is a hold-rated stock in the medical sector, which is 10.5% overvalued. JNJ set an all-time high at $82.96 last Thursday, which could become a double-top vs. the prior high at $82.95 set on April 3. The weekly chart profile is positive with extremely overbought momentum and the five-week MMA at $79.44. My monthly value level is $77.46 with a quarterly pivot at $81.06 and weekly risky level at $83.64.