Bank of America, eBay and IBM Headline Wednesday's Earnings

NEW YORK (TheStreet) -- Today's buy-and-trade earnings preview covers five companies from the finance sector, three from the computer and technology sector, and one each from consumer discretionary, consumer staples and retail-wholesale sectors.

The ValuEngine valuation warning continues with 77.7% of all stocks being overvalued, 44% by 20% or more. Fifteen of 16 sectors are overvalued, 13 by double-digit percentages, nine by more than 20%.

The finance sector is 19.2% overvalued with an equal-weight rating. Of the 3061 stocks in this sector 80.9% have hold ratings.

The computer and technology sector is 24.1% overvalued with an overweight rating with 47.5% of the 1160 stocks in the sector rated buy or strong buy.

The consumer discretionary sector is 23.1% overvalued with an equal-weight rating. Of the 405 stocks in this sector 81.5% have hold ratings.

The consumer staples sector is 17.2% overvalued with an overweight rating with 51% of the 263 stocks in the sector rated buy or strong buy.

The retail-wholesale sector is 25.4% overvalued with an overweight rating with 80.3% of the 351 stocks in the sector rated buy or strong buy.

Three of the 11 stocks in today's table have buy ratings, and eight have hold ratings. One stock is 9.8% undervalued and 10 are overvalued by 12.2% to 40.0%. One stock is down 10.5% over the last 12 months with 10 up between 10.6% and 52%. Two stocks are below their 200-day simple moving averages with nine above which reflects the risk of reversion to the mean.

Reading the Table

OV/UN Valued: 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 12 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 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.

Value Level: 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: Price at which to enter a GTC limit order to sell on strength.

American Express ( AXP) ($76.07) is trading above its 50-day SMA at $74.75, but the hold rated credit card giant has been trading sideways to down since testing its 2013 high at $78.63 on July 15. My weekly value level is $74.28 with a semiannual risky level at $78.27.

Bank of America ( BA) ($14.35) closed Monday just above its 50-day SMA at $14.30. This 'too big to fail' money center bank has been downgraded to hold from buy this morning and is well above its 200-day SMA at $13.01 with a weekly pivot at $14.09 and monthly risky level at $15.03.

eBay ( EBAY) ($54.77) is above its 50-day and 200-day SMAs at $53.39 and $53.76. This buy rated retail-wholesale stock has a semiannual value level at $51.69 with a weekly pivot at $54.49 and semiannual risky level at $56.21.

IBM ( IBM) ($186.97) is just above its 50-day SMA at $186.81. The buy rated IT giant has an annual value level at $171.70 with the weekly pivot at $187.16 and monthly risky level at $188.81.

Mattel ( MAT) ($41.94) is between its 50-day and 200-day SMAs at $41.88 and $42.39. The hold rated toy and game company has a semiannual value level is $40.05 with a weekly pivot at $42.05 and semiannual risky level at $46.51.

M&T Bank ( MTB) ($114.88) is just above its 50-day SMA at $114.25. The hold rated regional bank has a weekly value level at $110.75 with a monthly pivot at $114.23 and quarterly risky level at $125.25.

Pepsico ( PEP) ($81.09) held its 200-day SMA at $79.32 last week and is now just above its 50-day SMA at $80.73. The buy rated bottler of Pepsi soft drink products and Frito Lay snacks has an annual value level at $79.02 with a weekly pivot at $80.35 and semiannual risky level at $84.27.

PNC Financial ( PNC) ($72.98) is below its 50-day SMA at $73.70. This regional bank has a weekly value level at $71.60 with a monthly risky level at $79.21.

Sandisk ( SNDK) ($63.03) is approaching its multi-year high at $63.97 set on July 22. The hold rated semiconductor company has a quarterly value level at $61.27 with a monthly pivot at $62.73 and semiannual risky level at $72.05.

US Bancorp ( USB) ($37.18) is above its 50-day SMA at $36.83. The hold rated regional bank has a semiannual value level at $28.89 with a monthly pivot at $37.79 and semiannual risky level at $40.03.

Xilinx ( XLNX) ($47.45) is above its 50-day SMA at $45.89 with its multi-year high at $48.12 set on Sept. 17. The hold rated semiconductor company has a semiannual value level at $45.52 with a monthly pivot at $47.38 and quarterly risky level at $48.75.

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

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