Drugs and Booze Beat Construction Materials

NEW YORK ( TheStreet) - Last week I wrote, Hotels, Booze and Drugs Headline This Week's Earnings and this morning I provide a scorecard for the five companies that reported results.

The two companies that represented drugs and booze were the performance winners, while the company that provides construction materials was the biggest loser.

We enter the week with 77% of all stocks overvalued with 40.8% overvalued by 20% or more. Fifteen of 16 sectors are overvalued, 13 by double-digit percentages and with seven overvalued by more than 20%.

Here's Today's Earnings Scorecard:

Monsanto ( MON) ($105.63) missed EPS estimates by four cents losing 47 cents a share premarket on Oct. 2. The stock slipped to $101.78 into Oct. 2 holding the 200-day simple moving average at $101.94. Monsanto still has a sell rating with a monthly pivot at $102.38 and weekly risky level at $107.33.

Monsanto stock rebounded from its 200-day SMA on the pending acquisition of the Climate Corp., a software company that analyzes agriculture data. Customized data mining of farming data will be combined with Monsanto's R&D efforts to help farmers increase output while reducing the resources necessary to so.

Paychex ( PAYX) ($39.55) beat EPS estimates by a penny earning 44 cents a share in afterhours trading on Sept. 30. The stock moved sideways to down to a low for the week at $39.35 on Oct. 4, below the 50-day SMA at $39.86. Paychex maintains a hold rating with a weekly value level at $38.99 and monthly risky level at $42.40.

The payroll processing firm made some comments on the impact on the partial shutdown of the U.S. government including their estimation that 1 million U.S. federal workers could be furloughed. In addition they said that small businesses and individuals planning international travel would not be able to obtain a passport or visas.

Constellation Brands ( STZ) ($61.97) beat EPS estimates by 7 cents earning 96 cents a share before the open on Oct. 3. The stock opened higher and set a new multi-year high at $62.15 on Oct. 4 testing my September monthly risky level at $62.23. Constellation Brands maintains a hold rating with weekly and quarterly value levels at $60.98 and $60.58 and a new monthly risky level at $71.53.

The beer, wine and alcohol company's better than expected results and improved forward guidance was attributed to the acquisition of Grupo Modelo's U.S. beer business.

Texas Industries ( TXI) ($56.22) missed EPS estimates by 4 cents earning a penny a share in afterhours trading on Oct. 2. The stock fell from its Oct. 2 close at $67.02 to a low of $56.21 on Oct. 4. Texas Industries maintains its hold rating with a semiannual value level at $47.55 and semiannual and annual pivots at $58.20 and $61.58. My weekly risky level is $60.71.

Profitability for the cement and materials company was hurt by margins that were below analysts estimates.

Walgreen ( WAG) ($55.79) matched EPS estimates earning 73 cents a share premarket on Oct. 1. The stock set a new multi-year high at $57.41 on Oct. 3. Walgreen maintains a buy rating with a weekly value level at $54.89 with a monthly risky level at $56.93.

The drug store chain expects to benefit from Obamacare by encouraging shoppers to enroll in the exchanges, as such would increase the flow of prescriptions in their stores.

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 is the chief market strategist at AlphaPlus Analytics in addition to ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com