Nike Set to Report Earnings

NEW YORK (TheStreet) -- Six more companies of interest report quarterly results this week, including five on Thursday and one pre-market on Friday. Each company is in a different sector, and one is Nike, one of the three new Dow components. Two of the six have buy ratings, three have hold ratings and one has a sell rating.

All of the six sectors represented by these stocks are overvalued -- business services by 22.2%, computer and technology by 26.5%, consumer discretionary by 23.4%, consumer staples 17.2%, finance by 18.5% and retail-wholesale by 25.4%.

The business-services, consumer-discretionary and finance sectors have equal-weight ratings, while the computer and technology, consumer-staples and retail-wholesale sectors have overweight ratings.

Five of six stocks previewed in this post are overvalued by 20% or more. One is down 2.1% over the last 12 months, while three have gained between 32.1% and 172.6% over the last 12 months. Five of the six are trading above their 200-day simple moving averages, which reflects the risk of reversion to the mean.

Reading the Table

OV / UN Valued - The 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 twelve 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 twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.

Value Level: is the 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: is the price at which to enter a GTC Limit Order to sell on strength.

Management-consulting company Accenture ( ACN) ($76.36) set a multiyear high at $84.22 on May 22, and then dropped as low as $69 on June 28. It's above its 200-day SMA at $75.11. My semiannual value level is $72.61 with a semiannual risky level at $80.50.

Credit-card company Discover Financial ( DFS) ($51.01) set a multiyear high at $53.36 on Sept. 19. My semiannual value level is $48.93 without a risky level. With the stock 36.5% overvalued, the upside should be limited given a one-year price target, which was $52.14 at the high.

Finish Line ( FINL) ($22.51), a mall-based retailer of athletic footwear, set a 2013 high at $23.52 on Sept. 20. My monthly value level is $21.70 with a semiannual risky level at $28.51.

McCormick ( MKC) ($68.72), a distributor of spices, herbs and seasonings, set a multiyear high at $75.26 on May 22, and then dropped to as low at $66.67 on Aug. 29. The stock closed just below its 200-day SMA at $69.27 on Sept. 20. My semiannual value level is $67.62 with a quarterly risky level at $72.98.

Semiconductor company Micron Technology ( MU) ($17.05) set a multiyear high at $17.59 on Sept. 19 and was downgraded to sell the day after the high was set. My semiannual value level is $13.56 with a monthly pivot at $16.26 and no risky levels.

Sneaker maker and new Dow component Nike ( NKE) ($68.98) set a multiyear high at $70.56 on Sept. 19. My quarterly value level is $68.02 with a monthly pivot at $69.52 and semiannual risky level at $95.72.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

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