NEW YORK (TheStreet) -- Today I preview ten companies in the retail wholesale sector who report quarterly results Thursday and premarket Friday. All 10 have buy ratings according to ValuEngine. The retail wholesale sector is 24.9% overvalued, but with more than 70% of all stocks in the sector rated buy, it's a sector that continues to have an overweight rating.Most of the retailers previewed today are in the malls around the country, and cater to folks of all ages for their casual apparel needs; from infants to preteens, teenagers and young adults. A few of these stores compete against each other. Once consumers buy the clothing and footwear of their choice, they can turn to a closeout retailer of merchandise and toys, and check out video and entertainment software. With any money left in their pockets they can also visit a discount variety store before ending their shopping spree. This morning the ValuEngine valuation warning continues with 75.8% of all stocks overvalued 43.2% by 20% or more. 15 of 16 sectors are overvalued, 12 by double-digit percentages, seven by more than 20%.
The table below shows the upside potential to my semiannual risky levels and the downside risk to my annual value levels. I also show the percent decline off the early-August highs. For the Dow industrial average the upside is 9.9% with a downside of 15.4% after a decline of 4.2% from its Aug. 2 high at 15,658.42.
Foot Locker ( FL) ($35.10) held its 200-day SMA at $34.36 over the last eight sessions and reports quarterly results premarket on Friday. My monthly value level is $33.38 with a weekly pivot at $36.54 and semiannual risky level at $36.94. Gamestop ( GME) ($48.24) set a multi-year high at $51.36 on Aug. 1 and reports premarket on Thursday. My monthly value level is $42.53 with a weekly risky level at $50.77. Gap ( GPS) ($43.31) set a multi-year high at $46.56 on Aug. 2 and reports afterhours on Thursday. My semiannual value level is $37.17 with a quarterly pivot at $42.78 and weekly risky level at $47.00. PLCE) ($53.64) is between its 200-day and 50-day SMAs at $50.22 and $54.27 and reports premarket on Thursday. My monthly value level is $51.29 with a weekly risky level at $55.39. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.