Best Buy, Home Depot Headline Tuesday's Earnings

NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews focus on eight companies in six sectors that report quarterly results premarket Tuesday including Dow component Home Depot ( HD) and electronics and appliance retailer Best Buy ( BBY).

These stocks include three from the retail-wholesale sector, and one each in construction, consumer staples, medical, oils-energy and transportation.

The construction sector is 20.7% overvalued with an underweight rating. Of the 158 stocks 54.4% in this sector have sell or strong sell ratings.

The consumer staples sector is 23.9% overvalued with an overweight rating. Of the 260 stocks 41.9% in this sector have buy or strong buy ratings.

The medical sector is 25% overvalued with an equal-weight rating. Of the 774 stocks 60.5% in this sector have hold ratings.

The oils-energy sector is 18.9% overvalued with an equal-weight rating. Of the 551 stocks 58.8% in this sector have hold ratings.

The retail-wholesale sector is 28.6% overvalued with an overweight rating. Of the 345 stocks 80.0% in this sector have buy or strong buy ratings.

The transportation sector is 27.9% overvalued with an underweight rating. Of the 176 stocks 75% in this sector have sell or strong sell ratings.

Four of the eight stocks in today's table have buy ratings, two have hold ratings and two have sell ratings. All eight are overvalued by 12.2% to 69.1%. All have gains over the past 12 months between 17% and 561.9%. One stock is below its 200-day simple moving average with seven 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.

Best Buy ( BBY) ($43.69) set a multi-year high at $44.66 on Wednesday. The buy rated retailer of electronics and appliances is above its 50-day SMA at $40.35 with a weekly pivot at $44.78 and monthly risky level at $48.53.

Campbell Soup ( CPB) ($42.42) has been below its 200-day SMA at $43.73 since Sept. 19. The buy rated soup company is trading between its 50-day SMA at $41.75 and its 200-day SMA. My weekly value level is $41.75 with a semiannual pivot at $43.92 and monthly risky level at $46.66.

Diana Shipping ( DSX) ($11.99) set a multi-year high at $13.24 on Sept. 9 and traded as low as $11.16 on Oct. 9 and Oct. 31. The sell rated shipper of iron ore, coal and grain has a quarterly value level at $10.98 with a weekly pivot at $11.75 and monthly risky level at $12.79.

Home Depot ( HD) ($80.03) set a multi-year high at $81.56 on May 22 then as low as $72.21 on Sept. 6 staying above its 200-day SMA now at $74.69. The buy rated retailer of home improvement products has a weekly value level at $76.67 with a monthly risky level at $83.59.

Medtronic ( MDT) ($58.55) set a multi-year high at $58.85 on Thursday. The hold rated maker of medical devices for the heart has a quarterly value level at $56.81 with a weekly pivot at $59.11 and monthly risky level at $59.74.

TJX Companies ( TJX) ($63.52) set an all-time high at $63.53 on Friday. The buy rated parent of T.J. Maxx, Marshall's and HomeGoods stores has a monthly value level at $61.46 with a weekly pivot at $62.27 and quarterly risky level at $63.94.

Trina Solar ( TSL) ($16.15) set a multi-year high at $17.84 on Nov. 5. The hold rated maker of solar energy components has a monthly value level at $14.26 with a weekly risky level at $20.34.

Valspar ( VAL) ($71.45) set a multi-year high at $74.25 on May 28 then traded as low as $61.13 on Sept. 3. The stock moved above its 200-day SMA on Oct. 14, now at $65.88. The sell rated maker of paints and coatings has a monthly value level at $70.85 with a weekly risky level at $73.00.

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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