NEW YORK ( TheStreet) -- The retail-wholesale sector may be 24.9% overvalued according to www.ValuEngine.com, but this sector of 360 companies has 80% of the stocks rated buy. With an overweight sector rating I decided to profile nine buy-rated stocks in the retail-wholesale sector that are trading below $10 a share.All nine stocks profiled today are overvalued, six by more than 40%. Only one is lower in price over the last 12 months, while the others are up between 22.4% and 227.7%. Seven of nine are above their 200-day simple moving average, which reflects the risk of reversion to the mean. As you will observe one of the stocks in today's table ended above $10 on Tuesday and was downgraded to hold from buy.
Family-style restaurant chain Denny's ( DENN) ($6.22) set a new multi-year high at $6.25 on Monday. Each time this stock dropped to its 200-day SMA, now at $5.57 this key support held; on June 24 at $5.30, on July 30 at $5.40 and on Aug. 28 at $5.50. My quarterly value level is $5.52 with a semiannual pivot at $5.97 and monthly risky level at $6.40. Fitness machines maker Nautilus ( NLS) ($7.21) approached $10 a share on July 15 then traded as low as $6.15 on Aug. 12 holding its 200-day SMA, then at $6.22. Today the stock is between its 200-day SMA at $6.67 and its 50-day SMA at $7.63. My semiannual value level is $6.27 with a quarterly pivot at $6.93 and monthly risky level at $10.58. Women's fashion retailer New York & Co ( NWY) ($5.46) fell from $6.87 on July 11 to $4.64 into Sept. 10 but ended that day above its 200-day SMA at $4.76. Today the stock is between its 200-day SMA at $4.80 and its 50-day SMA at $5.81. My weekly value level is $4.41 with a semiannual pivot at $5.49 and semiannual risky level at $5.53. Office supply retailer Office Depot ( ODP) ($4.31) held its 200-day SMA at $3.94 on Aug. 21. The stock is on the cusp of its 50-day SMA at $4.29. My weekly value level is $4.22 with a monthly risky level at $4.97. Drugstore chain Rite Aid ( RAD) ($3.70) traded to a multi-year high at $3.75 on Sept. 11 with the 50-day SMA at $3.25. Weakness so far this yea has held the 50-day going all the way back to April 5 when the 50-day SMA was $1.71. My semiannual value level is $2.60 with a weekly pivot at $3.76 and monthly risky level at $3.86. Wholesale food and grocery distributor Supervalu ( SVU) ($7.70) traded to a 2013 high at $8.26 on July 18 and has been trading back and forth around its 50-day SMA at $7.50 since Aug. 20. My semiannual value level is $2.78 with a weekly pivot at $7.78 and monthly risky level at $9.48.
The operator of travel service centers catering to truckers along the interstate TravelCenters of America ( TA) ($8.00) has been a focus company of mine since I frequently travel on I75 and I95 between Tampa Bay, Fla., and the New York area. This stock was above $10 until Aug. 6 following disappointing earnings. After trading as low as $7.35 on Aug. 27 the stock failed at its 200-day SMA at $8.55 on Sep. 10. My semiannual value level is $7.18 with a quarterly pivot at $8.04 and semiannual risky level at $9.32. Fast food chain Wendy's ( WEN) ($8.54) set a multi-year high at $8.75 on Sept. 16 and is well above its 50-day SMA at $7.48 after holding that support on July 5 at $5.89. My monthly value level is $7.79 with a weekly risky level at $9.01. 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.