NEW YORK (TheStreet) - Earnings season picks up the pace this week and today I provide my pre-earnings buy-and-trade profiles for nine companies that report quarterly results in afterhours on Tuesday and premarket on Wednesday.
Four of the nine companies are in the computer and technology sector, which is 36.5% overvalued with an overweight rating as 52.1% of the 1126 stocks in the sector have buy or strong buy ratings. Among the buy-rated names is Dow component International Business Machines (IBM) whose stock set a multiyear low at $172.57 on Oct. 17 following weaker-than-expected third-quarter earnings,
One company is in the medical sector, which has an equal-weight rating as 56.3% of the 764 stocks in the sector have hold ratings. Only 7.2% have buy ratings and 32.1% have sell ratings.
Two are in the multi-sector conglomerates sector which is 32.3% overvalued with an overweight rating as 54.9% of the 51 stocks in the sector have buy ratings. Among the buy rated stocks is Dow component United Technologies (UTX), which set a new all-time intraday high at $114.71 on Jan. 10.
One company is in the retail-wholesale sector which is 23.4% overvalued with an overweight rating as 82.8% of the 343 stocks in the sector have buy or strong buy ratings.
One is in the transportation sector, which is 33.3% overvalued with an underweight rating as 72.9% of the 170 stocks in the sector have sell or strong sell ratings. Only 4.7% have buy ratings.
Abbott Labs (ABT) ($39.40) - Analysts expect the company to earn 58 cents a share premarket on Jan. 22. The medical device company traded to an all-time intraday high at $39.86 on Jan. 17 with its 200-day simple moving average at $36.39. The weekly chart is positive but overbought with its five-week modified moving average at $38.33 and its 200-week SMA at $28.90. Abbott has a hold rating and is 8.2% overvalued with a gain of 20.2% over the last 12 months. My monthly value level is $35.55 with a weekly pivot at $38.49 and quarterly and semiannual risky levels at $41.52 and $44.91.