Investing Ahead of Earnings: American Eagle, Dick's Sporting, Urban Outfitters

NEW YORK (TheStreet) -- Today and tomorrow investors will be reacting to earnings from a specialty retailer, a general store, a specialty retailer and nut company. Here, you can check out six companies before they report. 

American Eagle Outfitters (AEO) ($14.38, down 0.1% YTD): Analysts expect the casual apparel retailer to report earnings of 26 cents a share before the opening bell on Tuesday. The stock set a 2014 intraday high at $15.69 on Jan. 10 then declined to its 2014 intraday low at $12.59 on Jan. 27 and the stock ended last week above its 50-day simple moving average at $14.16 and below its 200-day SMA at $15.88. The weekly chart is positive with its five-week modified moving average at $14.21 and the 200-week SMA at $16.26. Weekly and monthly value levels are $12.43 and $12.15 with a semiannual pivot at $14.51 and semiannual and quarterly risky levels at $17.90 and $19.88.

Casey's General Stores (CASY) ($66.35, down 5.6% YTD): Analysts expect the midwest general store to report earnings of 50 cents a share after the closing bell today. The stock has been trading back and for the around its 200-day SMA at $68.55 since Jan. 8 and at Friday's close is below all three daily moving averages show in today's 'Crunching the Numbers' table. The weekly chart is neutral with the stock below its five-week MMA at $67.93 with a flat 12x3x3 weekly slow stochastic. My annual value levels are $63.08 and $59.63 with weekly and quarterly risky levels at $68.00 and $72.28.

Dick's Sporting Goods (DKS) ($53.60, down 7.7% YTD): Analysts expect the sporting goods retailer to report earnings of $1.11 per share before the opening bell tomorrow. The stock set an all-time intraday high at $58.87 on Jan. 8 then declined to its 2014 intraday low at $49.58 which was below the 200-day SMA. The rebound since then has the stock above its 200-day SMA at $52.56. The weekly chart is positive with its five-week MMA at $53.26. My weekly value level is $48.53 with monthly and semiannual risky levels at $56.36 and $63.46.

Diamond Foods (DMND)($30.60, up 18.4% YTD): Analysts expect the supplier of Emerald nuts to report earnings of 8 cents a share after the closing bell tomorrow. The stock set a multiyear intraday high at $31.09 on Tuesday well above all three daily moving averages shown in today's table. The weekly chart is positive but overbought with its five-week MMA at $27.30 and the 200-week SMA at $34.97. The stock traded as high as $96.13 in September 2011, then its parabolic bubble popped. Annual and monthly value levels are $28.71 and $26.92 with semiannual risky levels at $32.64 and $33.89.

Verifone Systems (PAY) ($29.50, up 10% YTD): Analysts expect the electronic payment services provider to report earnings of 15 cents a share after the closing bell on tomorrow. The stock set a new 52-week intraday high at $30.72 well above all three daily moving averages shown in today's table. The weekly chart is positive but overbought with its five-week MMA at $28.28 and its 200-week SMA at $33.06. The stock traded as high as $58.88 in April 2011. My quarterly value level is $21.48 with weekly and monthly risky levels at $30.30 and $32.91.

Urban Outfitters (URBN) ($37.56, up 1.2% YTD): Analysts expect the specialty retailer to report earnings of 55 cents a share after the closing bell on today. The stock set its all-time intraday high at $44.96 back in May 2013 and set a 52-week intraday low at $33.95 on Feb. 4. The stock has been below its 200-day SMA at $38.90 since Sept. 10. The weekly chart is positive with its five-week MMA at $36.83 and held its 200-week SMA at $34.13 at the Feb. low. My annual value levels are $36.78 and $36.29 with quarterly and semiannual risky levels at $44.34 and $46.93.

Crunching the Numbers with Richard Suttmeier

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.

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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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