Earnings Preview: The Gap, Salesforce.com Report Earnings After Hours

NEW YORK (TheStreet) -- Today's pre-earnings buy-and-trade profiles include five companies that report after the closing bell today and three that report before the opening bell tomorrow.

A detailed technical analysis chart about these stocks is on page 3 of this article. I also explain my number-crunching terms there.

The specialty retailer of casual apparel for all members of the family Gap (GPS) is a focus stock for after hours earnings today as the stock has a gain of 12.4% so far in 2014 as a positive earnings report is anticipated.

From the tech sector, business software provider Salesforce.com (CRM) is my second focus stock for after hours today as this stock is up 15.5% year-to-date in anticipation of an earnings beat.

On to the analysis:

SalesForce.com ($63.74, up 15.5% YTD): Analysts expect earnings per share loss of 8 cents a share after the closing bell today. The stock set an all-time intraday high at $64.74 on Wednesday well above its 200-day simple moving average at $49.96. The weekly chart is positive but overbought with its five-week modified moving average at $60.62. The stock has a gain of 56.1% over the last 12 months. My monthly value level is $60.93 with a weekly risky level at $66.08.

3D Systems (DDD) ($75.97, down 18.3% YTD): Analysts expect the provider of 3D printing products to report earnings of 22 cents a share premarket Friday. The stock set a 2014 high at $97.14 on Jan. 6 then to a 2014 low at $54.63 on Feb. 5 before rebounding to $82.65 on Feb. 21 so this stock can be extremely volatile with its 200-day SMA at $61.53. The weekly chart is negative with its five-week MMA at $78.32 and its 200-week SMA at $26.63. Reaction to this earnings report is difficult to judge as the weekly chart appears to show the popping of a parabolic bubble.

The stock has a gain of 116.3% over the last 12 months. My semiannual and annual value levels lag at $57.37 and $52.19 with a semiannual pivot at $77.78 and monthly and quarterly risky levels at $80.88 and $87.79.

Deckers Outdoor (DECK) ($82.34, down 2.5% YTD): Analysts expect the footwear and apparel retailer to report earnings of per share of $3.81 after the closing bell today. The stock set a multiyear intraday high at $90.09 on Jan. 7 then traded to a 2014 low at $72.68 on Jan. 24 well above its 200-day SMA at $66.73. The weekly chart is positive with the five-week MMA at $81.42. The stock has a gain of 104.1% over the last 12 months. My weekly value level is $79.39 with a monthly pivot at $84.81 and semiannual risky level at $86.91.

Gap ($43.91, up 12.4% YTD): Analysts expect the retailer to report earnings of 66 cents a share after the closing bell today. The stock gapped above its 200-day SMA at $40.85 on Feb. 7 trading to a 2014 high at $44.33 on Wednesday. The weekly chart is positive with its five-week MMA at $41.14.

The stock has a gain of 38.1% over the last 12 months. My monthly and semiannual value levels are $39.79 and $36.58 with a quarterly risky level at $51.65.

H&E Equipment (HEES) ($30.97, up 4.5% YTD): Analysts expect the provider of heavy construction equipment company to report earnings of 44 cents a share premarket on Friday. The stock set a multiyear intraday high at $34.19 on Jan. 16 the traded down to $28.35 on Feb. 5 staying above its 200-day SMA at $25.96. The weekly chart is neutral with its five-week MMA at $30.56. The stock has a gain of 65.9% over the last 12 months. Quarterly and semiannual value levels are $28.45 and $24.37 with a monthly pivot at $30.58 and weekly risky level at $32.78.

Iron Mountain (IRM) ($28.53, down 6% YTD): Analysts expect the offsite document storage company to report earnings of 22 cents a share premarket on Friday. The stock had been below its 200-day SMA since June 7 and traded down to a multiyear intraday low at $25.03 on Oct. 11 the rebounded to its 200-day SMA now at $28.50. The weekly chart is positive with its five-week MMA and 200-week SMA converged at $28.04 and $28.07. The stock has a loss of 17.5% over the last 12 months. My annual value level is $18.54 with a semiannual pivot at $28.16 and quarterly and annual risky levels at $30.88 and $32.91.

Monster Beverage (MNST) ($71.00, up 4.7% YTD): Analysts expect the provider of energy drinks to report earnings of 45 cents a share after the closing bell today. The stock set a multiyear intraday high at $75.63 on Monday and is well above its 200-day SMA at $60.87. The weekly chart is positive but overbought with its five-week MMA at $69.44.

The stock has a gain of 45.1% over the last 12 months. My monthly value level is $67.95 with a quarterly pivot at $73.16 and semiannual risky level at $74.37.

Ross Stores (ROST) ($71.69, down 4.3% YTD): Analysts expect the off-price retailer of apparel and home accessories to report earnings of $1.02 a share after the closing bell today. The stock set an all-time intraday high at $81.99 on Nov. 18 then traded as low as $65.15 below its 200-day since Jan. 22 then back above it at $70.20 on Wednesday. The weekly chart is positive with its five-week MMA at $40.45.

The stock has a gain of 27.5% over the last 12 months. Weekly and annual value levels are $66.20 and $59.18, an annual pivot is $69.33 and semiannual and quarterly risky levels at $82.11 and $82.99.


Today's crunching-the-numbers table presents my detailed pre-earnings buy-and-trade profiles include five companies that report after the closing bell today and three that report before the opening bell on Friday.

Crunching the Numbers

In the column labeled Last 12-Month Return I show the percent gain or loss over the last 12 months.

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: (stocks below a moving average listed in Red are below that moving average)

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon. (even Apple declined to its 200-week SMA in June 2013)

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six to 12 month horizon. (even Apple tested or crossed its 200-day SMA in nine of the last 10 years)

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

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

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

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.

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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