A Closer Look at Apple, Google and 5 Really Big Stocks Over $200

NEW YORK (TheStreet) -- The bull market for stocks has entered the momentum phase where stocks move higher not on fundamentals but on positive technical momentum. Today's focus is on seven momentum stocks including two that report earnings today and tomorrow. Apple (AAPL) ($525.96) reports in afterhours trading today and EPS is expected to be $7.85 per share. LinkedIn (LNKD) ($240.70) is expected to report EPS of a penny a share afterhours Tuesday.

These seven momentum stocks trade well above $200 per share. All seven are overvalued by 11% to 92.6%. Two have buy ratings and five have hold ratings. One is down 13.7% over the last 12 months while the gainers are up 49.8% to 433.3%. Three of the seven have astronomical price-to-earnings ratios between 226.2 and 1297.8. All are well above their 200-day simple moving averages reflecting the risk of a 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.

Apple ( AAPL) ($525.96) has a hold rating according to ValuEngine and it's 11% overvalued with a one-year price target at $536.11. The daily chart is positive but overbought with the stock well above its 50-day and 200-day SMAs at $491.95 and 455.28. The weekly chart has been positive since the stock tested its 200-week SMA back at the end of June when the stock traded as low as $388.87. My weekly value level is $501.66 with my annual pivot at $510.64 and semiannual risky level at $620.84.

Amazon.com ( AMZN) ($363.39) has a hold rating and is 92.6% overvalued with a one-year price target at $347.63. The daily chart is positive but overbought with the 50-day and 200-day SMAs at $305.63 and $281.49. The weekly chart is positive but overbought with the five modified moving average at $321.03. My semiannual value levels are $324.33 and $313.60 with a weekly pivot at $366.08.

Chipotle ( CMG) ($527.50) has been downgraded to hold from buy as the stock reached yet another all time high at $528 on Friday. The daily chart is positive but extremely overbought. The weekly chart is also positive but extremely overbought and forming a parabolic which starts a bubble that will eventually pop. My weekly value level is $505.25 with no risky levels.

Google ( GOOG) ($1015.20) has a hold rating and is 41.6% overvalued with a one-year price target at $1016.20. The daily chart is positive but overbought and the weekly chart is positive with the five-week MMA down at $926.91. My quarterly value level is $986.18 with a weekly pivot at $1005.17.

LinkedIn ( LNKD) ($240.70) has a hold rating without a fair value with a one-year price target at $250.54. The daily is neutral with the 50-day SMA at $241.82. The weekly chart shifts to negative on a close this week below the five-week MMA at $239.25. My quarterly value level is $222.58 with a weekly risky level at $248.10.

Netflix ( NFLX) ($328.03) has a buy rating but is 74.4% overvalued with a one-year price target at $355.36 which has already been tested. The daily chart is neutral with the 50-day SMA at $304.23 and with declining momentum. The weekly chart is positive but overbought with the five-week MMA at $308.59. My semiannual value level is $237.48 with a monthly pivot at $318.67 and weekly risky level at $347.44.

Priceline.com ( PCLN) ($1070.85) has a buy rating but is 23.7% overvalued with a one-year price target at $1160.92. Priceline reports quarterly results on Nov. 7 in afterhours trading and is expected to earn $15.64 a share. The daily chart is positive with the 50-day SMA at $996.08. The weekly chart is positive but overbought with the five-week MMA at $1013.23. My quarterly value level is $1022.97 with a weekly risky level at $1107.40.

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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