NEW YORK ( TheStreet) -- The discount retailers are in the retail-wholesale sector, which is one of the five of 16 sectors that I gave an overweight rating on Tuesday in Cisco Joins List of 11 Buy-Rated Dow Stocks as Fundamentals Deteriorate. On June 3 I wrote, Discount Retailers Track Slow Consumer Spending where I profiled nine buy-rated discount retailers. Today these nine stocks remain buy-rated and seven have traded higher since the end of May.The headliner this week just as it was three months ago is Dollar General ( DG) which reported quarterly earnings pre-market on Wednesday. This discounter beat EPS estimates by 3 cents earning 77 cents a share. The stock traded to a new multi-year high at $57.42 despite a cautious outlook. Fundamentally, the stock market remains under a ValuEngine valuation warning with 74.6% of all stocks overvalued, and with 38.0% overvalued by 20% or more. We show 15 of 16 sectors overvalued, 13 by double-digit percentages, with four overvalued by more than 20%. The retail-wholesale sector is overvalued by 19.3%. Seven of the nine discount retailers rose by 1.7% to 14.9% since the end of May with two declining by 2.6% and 8.6%. Eight of nine are overvalued but by 18.8% or less. At the end of May all nine stocks were above their 200-day SMAs and today two are below on the risk of a reversion to the mean.