NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews focus on nine retail-oriented companies that report quarterly results on Thursday including discounters Dollar General (DG - Get Report) and Big Lots (BIG - Get Report), and men's clothier Joseph A Bank (JOSB) who is in a bidding war with Men's Wearhouse (MW).
The nine stocks include seven from the retail-wholesale sector, and one each from the consumer discretionary and consumer staples sectors.
The consumer discretionary sector is 35.5% overvalued with an equal-weight rating. Of the 393 stocks 82.7% in this sector have hold ratings.
The consumer staples sector is 26.1% overvalued with an overweight rating. Of the 256 stocks 52.7% in this sector have buy or strong buy ratings.
The retail-wholesale sector is 31.9% overvalued with an overweight rating. Of the 343 stocks 82.5% in this sector have buy or strong buy ratings.
All seven retail-wholesale stocks in today's table have buy ratings and the other two consumer stocks have hold ratings. One stock is slightly undervalued and four are overvalued by 20.8% to 29.8%. All have double-digit gains over the last 12 months between 15.8% and 59.8%. One is below its 200-day SMA while eight are above their 200-day SMAs which reflect 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.
Big Lots ($38.96) set a multi-year high at $39.22 on May 22 and is challenging that high pre-earnings with a high at $39.01 on Tuesday. The buy rated close out merchandise and toys has a monthly value level at $36.65 with a weekly pivot at $37.89 and semiannual risky level at $44.47.
Dollar General ($56.48) set a multi-year high at $59.87 on Oct. 25 and ended last week below its 50-day simple moving average at $58.00. The buy rated discounter is above its 200-day SMA at $53.74 with a semiannual pivot at $56.97 and a monthly risky level at $58.77.
Diamond Foods (DMND) ($23.41) set a multi-year high at $25.32 on Sept. 26 and approached that level with a high of $25.07 on Nov.29 then traded lower pre-earnings on Tuesday to close just above its 50-day SMA at $23.28. The hold rated distributor of nuts such as peanuts, cashews, walnuts and almonds is above its 200-day SMA at $19.61 with a monthly pivot at $25.33 and a weekly risky level at $26.80.
Five Below (FIVE - Get Report) ($50.49) set a multi-year high at $55.28 on Nov. 18. The buy rated specialty retailer of merchandise for teens and pre-teens has a monthly value level at $47.64 with a weekly risky level at $54.42.
Joseph A Bank ($56.58) set a new all-time high at $57.59 on the recent take-over bid from Men's Wearhouse. The hold rated men's tailored and casual clothing and accessories has a monthly value level at $52.56 with an annual pivot at $55.24 and semiannual risky level at $61.87.
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Kroger (KR - Get Report) ($42.10) set a multi-year high at $43.85 on Oct. 28 and is trading on the cusp of its 50-day SMA at $41.79. The buy rated grocery chain has a quarterly value level at $37.94 with a monthly risky level at $43.56.
Toro (TTC - Get Report) ($60.19) set a multi-year high at $62.47 on Nov. 29. The hold rated provider of turf maintenance equipment, snow removal products and irrigation systems has a monthly value level at $59.95 with a quarterly pivot at $61.20 and a weekly risky level at $63.46.
Ultra Salon (ULTA - Get Report) ($125.01) set a multi-year high at $132.72 on Nov. 18 and ended Tuesday below its 50-day SMA at $125.33. The buy rated beauty and salon products has a semiannual value level at $121.59 with a weekly pivot at $129.86 and a quarterly risky level at $130.23.
Zumiez ZUMZ ($27.53) stayed below its 200-day SMA at $27.90 on Monday and Tuesday. The buy rated retailer of action related apparel and footwear focusing on skateboarding, snowboarding and motocross has a weekly risky level at $30.26.
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.