Buckle Up for More Retail Earnings

NEW YORK ( TheStreet) -- My major focus this week is on 18 buy-rated stocks in the retail-wholesale sector that report quarterly results.

On Monday, I profiled the front nine and today it's the back nine. I am calling an earnings beat a birdie, a match a par, and a miss a bogey. An under-par round of earnings from buy-rated retail stocks will be a key to sustaining the upward momentum to the overall stock market.

The stock market remains under a ValuEngine Valuation Warning which intensified this morning with 72.8% of all stocks overvalued, and with 34.5% of these overvalued by 20% or more.

Among the 16 sectors tracked by ValuEngine, 15 are overvalued, 14 by double-digit percentages. Six of these sectors are now overvalued by more than 20% led by the retail-wholesale sector by 23%. This sector of 360 stocks includes 224 or 62.2% with buy ratings, which continues my overweight rating for the sector.

Tomorrow I will profile the buy-rated names in the Dow industrial average, which set another all-time high at 13,391.84 on Monday.

Today the number of buy-rated stocks declined to 15 after IBM ( IBM) ($207.60) was downgraded to hold from buy this morning.

There are 13 hold-rated stocks in the Dow and two sell-rated names; Caterpillar ( CAT) ($88.33) and DuPont ( DD) ($55.93).

Here are the profiles for the back nine of this week's retail earnings:

Reading the Table

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.

If you liked this article you might like

The Best Companies for Women

Hewlett Packard Enterprise Becomes the Latest Tech Titan to Slash Jobs

Sorry Elon Musk but Artificial Intelligence Grows Jobs: Domino's Pizza CEO

Ray Dalio Also Thinks AI Will Be a Killer Just Like Tesla's Elon Musk Does