Cisco, Wal-Mart and Macy's Lead This Week's Earnings Parade

NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews focus on 10 companies in five sectors including Dow components Cisco Systems ( CSCO) who reports in afterhours trading on Wednesday and Wal-Mart ( WMT) who reports premarket on Thursday. Leading the parade is Macy's ( M) who reports pre-market on Wednesday.

The 10 stocks include four stocks from the computer and technology sector, three from the retail-wholesale sector, and one each in these sectors; basic materials, construction and consumer staples.

The stock market has been experiencing snap back rallies, and crackles to the downside, but the Fed-induced bubble is not ready to pop. The yield on the 30-year Treasury bond ended last week at 3.853%, which caused the ValuEngine valuation warning to intensify to a new 2013 high with 83.8% of all stocks overvalued. The percent of stocks overvalued by 20% or more now stands at 53%. We now show that all 16 sectors are overvalued, 15 double-digit percentages, with nine overvalued by 21.3% to 28.3%.

The computer and technology sector is 25.2% overvalued with an overweight rating. Of the 1148 stocks 53.4% in this sector have buy or strong buy ratings.

The basic materials sector is 5% overvalued with an underweight rating. Of the 395 stocks 65.6% in this sector have sell or strong sell ratings.

The construction sector is 16.3% overvalued with an underweight rating. Of the 158 stocks 61.4% in this sector have sell or strong sell ratings.

The consumer staples sector is 19.3% overvalued with an overweight rating. Of the 260 stocks 41.9% in this sector have buy or strong buy ratings.

The retail-wholesale sector is 22.8% overvalued with an overweight rating. Of the 345 stocks 80.9% in this sector have buy or strong buy ratings.

Six of the 10 stocks in today's table have buy ratings and four have hold ratings. Three stocks are undervalued by 9.6% to 61.2%. Seven are overvalued by 9.0% to 45.3%. Three are down between 13.5% and 51.4% over the last 12 months, while seven have gains between 7.6% and 69.1%%. Three stocks are below their 200-day simple moving averages, and seven are 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.

Applied Materials ( AMAT) ($17.75) set a multi-year high at $18.18 on Oct. 14. The hold rated semiconductor fabrication equipment is above its 50-day SMA at $17.11 with a quarterly value level at $16.46, a monthly pivot at $18.00 and weekly risky level at $19.21.

Cisco Systems ( CSCO) ($23.51) ended last week above its 50-day and 200-day SMAs at $23.37 and $23.00. The hold rated Internet networking solutions company and Dow component has an annual value level at $22.76 with a semiannual pivot at $23.47 and monthly risky level at $25.30.

Dean Foods ( DF) ($19.39) has been trying to take out its 200-day SMA at $19.75 and has stayed above its 50-day at $18.96 since Oct. 23. The buy rated processor of milk and other dairy products has a weekly value level at $18.49 and a quarterly risky level at $22.23.

D R Horton ( DHI) ($18.14) is above its 52-week low Sept. 5 at $17.52 and is below its 50-day SMA at $19.06. The hold rated homebuilder has an annual value level at $16.05 with a weekly pivot at $18.77 and monthly risky level at $20.21.

Kinross Gold ( KGC) ($4.93) has been trading sideways to down below its 200-day SMA $5.98 since this average was around $9 on Jan. 24. The hold rated gold miner has a weekly value level at $4.68 with a semiannual risky level at $6.23.

Kohl's ( KSS) ($57.03) set a multi-year high at $58.93 on Nov. 4. The buy rated family-oriented department store has an annual value level at $54.80 with a semiannual pivot at $56.05 and semiannual risky level at $60.88.

Macy's ( M) ($46.18) is trading above its 50-day and 200-day SMAs at $44.51 and $45.01. The buy rated department store formerly know as Federated has a weekly value level at $44.73 with a semiannual pivot at $46.21 and monthly risky level at $50.24.

NetApp ( NTAP) ($39.91) stayed above its 200-day SMA at $38.26 on Wednesday. The buy rated maker of computer storage devices has a weekly value level at $38.30 with a quarterly pivot at $40.84 and a monthly risky level at $43.33.

Netease ( NTES) ($66.64) stayed above its 200-day SMA at $61.69 on Thursday. The buy rated Internet software company focusing on China has a semiannual value level at $65.71 and a weekly risky level at $68.03.

Wal-Mart ( WMT) ($77.96) has been above its 50-day and 200-day SMAs at $75.03 and $75.20. The buy rated largest global retailer has a semiannual value level at $74.96 with a weekly pivot at $77.33 and monthly risky level at $80.39.

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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