9 Earnings Profiles: Humana, Merck, Time Warner

NEW YORK (TheStreet) -- Today I provide my buy-and-trade pre-earnings profiles for nine companies, two who report afterhours today and seven who report premarket on Wednesday. Among those reporting on Wednesday two are in the medical sector. Will Humana (HUM) discuss how ObamaCare is affecting their bottom line? Dow component and pharmaceutical giant Merck (MRK) has been a solid performer setting a new multiyear high last week.

Two of the stocks profiled today are in the consumer discretionary sector which is 26.4% overvalued with an equal-weight rating as 85.9% of the 389 stocks in the sector have hold ratings according to www.ValuEngine.com.

Three stocks are in the medical sector which is most overvalued sector by 32.5%. The sector has an underweight rating as 32.8% of the 760 stocks in the sector have sell or strong sell ratings.

Estee Lauder (EL) ($68.28): Analysts expect the company to earn $1.06 a share premarket on Wednesday. The stock set a multi-year intraday high at $75.77 on Nov. 29 then traded down to $67.58 on Jan. 27 below its 200-day simple moving average at $69.96. The weekly chart is negative with its five-week modified moving average at $71.00 and its 200-week SMA at $53.93. The company is in the consumer staples sector which is 17.3% overvalued with an overweight rating as 55.6% of the 252 stocks in the sector have buy and strong buy ratings. Estee Lauder has a buy rating is 5.7% overvalued with a gain of 11.8% over the last 12 months. My weekly, annual and monthly pivots are $70.29, $70.99 and $71.20.

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