Adobe, Lululemon and Vera Bradley Earnings Ahead

NEW YORK (TheStreet) -- Today's buy-and-trade earnings previews focus on seven companies in four sectors that report quarterly results beginning with the provider of women's accessories Vera Bradley (VRA) afterhours on Wednesday, the provider of yoga-inspired athletic sportswear Lululemon (LULU) premarket on Thursday and publishing software provider Adobe Systems (ADBE) in the afterhours on Thursday.

The seven stocks include four from the retail-wholesale sector, two from the computer and technology sector and one each from the construction and consumer discretionary sectors.

The computer and technology sector is 29.9% overvalued with an overweight rating. Of the 1140 stocks 51.7% in this sector have buy or strong buy ratings. The construction sector is 16.5% overvalued with an underweight rating. Of the 156 stocks 56.4% in this sector have sell or strong sell ratings.

The consumer discretionary sector is 28.3% overvalued with an equal-weight rating. Of the 393 stocks 83.2% in this sector have hold ratings. The retail-wholesale sector is 24.7% overvalued with an overweight rating. Of the 343 stocks 82.2% in this sector have buy or strong buy ratings.

Two of the seven stocks profiled today have buy ratings, four have hold ratings and one has a sell rating. One stock is undervalued by 6.7% and four are overvalued by 27.4% to 82.8%. One stock has lost 5.1% over the last 12 months, and four have gains between 49.3% and $109%. Two are below their 200-day simple moving averages while five are above their 200-day SMAs which reflect the risk of reversion to the mean. 

Adobe Systems ($55.44) set a new all-time intra-day high at $57.99 on Nov. 14 and weakness since than has held above its 50-day SMA at $54.26. Analysts expect the company to report earnings of 19 cents a share in the afterhours on Thursday. The hold rated provider of publishing software is 81.7% overvalued and has gained 55.1% over the last 12 months and is well above its 200-day SMA at $47.51. My annual value level is $48.74 with quarterly and monthly pivots at $55.39 and $55.66 and weekly risky level at $58.39.

Ciena Corp (CIEN) ($23.12) set a multi-year high at $27.94 on Oct. 22 and is below its 50-day SMA at $24.15 and above its 200-day SMA at $20.31. Analysts expect earnings of 17 cents a share in the premarket on Thursday. The hold rated network specialist company is 25.8% overvalued and is up 46.3% over the last 12 months. My semiannual and weekly value levels are $22.09 and $20.50 with an annual and semiannual pivots at $23.33 and $23.72 and quarterly and monthly risky levels at $24.22 and $25.28.

Hovnanian (HOV) ($5.11) has been trading sideways to down below its 200-day SMA at $5.47 since July 24 but closed Monday above its 50-day SMA at $5.05. Analysts expect earnings of 16 cents a share on Thursday. The sell rated homebuilder is 14% overvalued and is down 4.7% over the last 12 months. My weekly and monthly pivots are $5.01 and $4.95 with semiannual risky levels at $5.69 and $5.77.

Lululemon ($70.34) set an all-time intra-day high at $82.50 on June 10 then plunged to $59.60 on June 21 on the problems related to yoga pants that were said to be transparent. The stock is currently just below its 200-day SMA at $70.61. Analysts expect earnings of 41 cents a share premarket on Thursday. The stock has a buy rating is 5.2% overvalued and has lost 2.7% over the last 12 months. My weekly value level is $64.61 with a monthly risky level at $80.21.

Men's Wearhouse (MW)($51.21) set a multi-year intra-day high at $52.72 on Nov. 26 and is well above its 200-day SMA at $37.86. Analysts expect earnings of 87 cents a share in the afterhours on Thursday. The hold rated men's clothier is 54% overvalued and has gained 69% over the last 12 months. My weekly and monthly value levels are $48.77 and $47.41 with a weekly risky level at $58.92.

Vera Bradley ($23.44) has been above its 200-day SMA at $22.32 since Nov. 1 and traded as high as $25.72 on Nov. 14. Analysts expect earnings of 34 cents a share in the afterhours on Wednesday. The buy rated provider of women's accessories is 6.1% undervalued with a loss of 5.3% over the last 12 months. My monthly and annual value levels are $21.88 and $19.48 with annual and weekly risky levels at $24.86 and $26.01.

Quicksilver (ZQK)($8.01) has been above its 200-day SMA at $6.85 since Sept. 6 trading as high as $9.29 on Nov. 13 ending Monday just below its 50-day SMA at $7.99. Analysts expect the company to report earnings of 5 cents a share afterhours on Thursday. The hold rated provider of sport-related apparel and footwear is 57.6% overvalued with a gain of 96.8% over the last 12 months. My quarterly, semiannual and annual value levels are $6.75, $6.72 and $6.66 with a monthly pivot at $8.48 and weekly risky level at $9.69.

At the time of publication the author held no positions in any of the stocks mentioned.

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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier is the chief market strategist at 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.

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Richard Suttmeier can be reached at RSuttmeier@Gmail.com