GE, Morgan Stanley and SunTrust Headline Friday's Earnings

NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews cover three companies from the multi-sector conglomerates sector, two from the finance sector and one each in the industrial products and oils-energy sectors.

The ValuEngine valuation warning continues with 77.8% of all stocks being overvalued, 44.2% by 20% or more. 15 of 16 sectors are overvalued 13 by double-digit percentages, nine by 21.3% to 25.8%.

The multi-sector conglomerate sector is 19.2% overvalued with an equal-weight rating. 74.5% of the 51 stocks in this sector have hold ratings.

The finance sector is 19.4% overvalued with an equal-weight rating. 80.9% of the 3061 stocks in this sector have hold ratings.

The industrial products sector is 22.8% overvalued with an underweight rating with 40.5% of the 351 stocks in this sector have sell or strong sell ratings.

The oils-energy sector is 9.3% overvalued with an underweight rating. 31.2% of the 555 stocks in this sector have sell or strong sell ratings.

Two of the seven stocks in today's table have buy ratings and five have hold ratings. All seven are overvalued by 12% to 36.3%. All seven have gains over the last 12 months, five with gains of 18.5% to 60.2%. Only one stock is below its 200-day simple moving average with six 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.

General Electric ( GE) ($24.36) set a multi-year high at $24.95 on July 19 then traded as low as $22.92 on Sept. 3. The buy rated Dow component is above its 50-day SMA at $23.93, has a weekly value level at $23.78, a monthly pivot at $24.48 and semiannual risky level at $26.68.

Honeywell ( HON) ($85.75) set a multi-year high at $87.55 on Sept. 19. The buy rated diversified technology and manufacturing company has a semiannual value level at $84.88 and a monthly risky level at $88.52.

Ingersoll Rand ( IR) ($63.35) set a multi- year high at $66.62 on Sept. 24 and held its 50-day SMA at $62.98 on Wednesday. The hold rated industrial products company has a semiannual value level at $62.60 and a monthly risky level at $65.18.

Morgan Stanley ( MS) ($28.63) set a multi-year high at $29.49 on Sept. 18. The hold rated financial services firm moved above its 50-day SMA at $27.10 on Thursday and has a monthly value level at $26.90 with a quarterly pivot at $27.72 and semiannual risky level at $29.47.

Schlumberger ( SLB) ($92.18) set a multi-year high at $92.39 on Wednesday. The hold rated oil and gas services company has a semiannual value level at $87.26 with a weekly pivot at $91.59 and semiannual risky level at $95.14.

SunTrust Banks ( STI) ($33.84) set a multi-year high at $36.29 back on July 19 then traded as low as $31.59 on Sept. 3. The hold rated regional bank is above its 50-day SMA at $33.33 with a weekly value level at $31.63, a monthly pivot at $34.07 and semiannual risky level at $35.18.

Textron ( TXT) ($27.06) set its 2013 high at $31.30 on March 20 then traded to its 2013 low at $24.87 on May 1. The hold rated conglomerate is below its 200-day SMA at $27.82 with a monthly value level at $26.12, a semiannual pivot at $27.66 and quarterly risky level at $34.19.

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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