How to Trade Akamai, Chevron, LinkedIn, 9 More Earnings Reports This Week

NEW YORK (TheStreet) - Today we crunch the numbers on 12 companies that report their quarterly earnings reports after the closing bell on Thursday or before the opening bell on Friday.

Rather than profile each stock individually, I crunch the numbers in the following tables for you. Note that eight companies report after the close today and four before the open tomorrow.


The biggest year-to-date gainer is Manitowoc (MTW)($31.78), up 36.3%. Analysts expect the maker of many types of commercial products such as ice machines and beverage dispensers to report earnings per share of 22 cents after the closing bell today. The stock set a multiyear intraday high at $32.80 on March 21, then traded as low as $28.87 on April 7. It is above all five moving averages in the first table.

The weekly chart shifts to negative given a close this week below its five-week modified moving average at $30.60. Quarterly and semiannual value levels are $27.24 and $22.93, with a monthly risky level at $32.75.

The second best year-to-date gainer is Public Storage (PSA) ($175.51), up 16.6%. Analysts expect the provider of storage garages to report EPS of $1.86 after the closing bell today. The stock set an all-time intraday high at $176.72 on April 29, and it is above all five moving averages in the first table.

The weekly chart is positive but overbought, with its five-week MMA at $170.30. Quarterly and monthly value levels are $168.99 and $162.33, with a monthly pivot at $175.52 and semiannual risky levels at $181.11 and $181.73. This new monthly pivot suggests a potential reversal-oriented reaction to the company's earnings report.

In third place year-to-date is Akamai Tech (AKAM) ($53.07), up 12.5%. Analysts expect the provider of Internet applications that help companies improve online commerce to report EPS of 44 cents after the closing bell today. The stock set a multiyear intraday high at $63.15 on Feb. 28, then traded as low as $50.52 on April 29, holding its 200-day simple moving average at $50.55.

The weekly chart stays negative given a close this week below its five-week MMA at $54.66. This week's value level is $51.05, with a quarterly pivot at $53.10 and semiannual and annual risky levels at $54.87 and $56.24.

The biggest year-to-date loser is LinkedIn (LNKD) ($153.47), down 29.2%. Analysts expect the social network service for professionals to report EPS of a penny after the closing bell today. The stock set an all-time intraday high at $257.55 on Sept. 11, 2013, and has been below its 200-day SMA since Feb. 28. It traded as low as $143.26 on April 28.

The weekly chart stays negative but oversold given a close this week below its five-week MMA at $174.74. We show a monthly pivot at $164.79 and a quarterly risky level at $237.70.

Another double-digit year-to-date loser is OpenTable (OPEN) ($67.16), down 15.4%. Analysts expect the online restaurant reservation service to report EPS of 31 cents after the closing bell today. The stock traded as high as $85.87 on March 13. Then its momentum bubble popped, with the stock trading as low as $62.39 on April 28, staying just above its 200-week SMA at $61.91.

The weekly chart is negative with its five-week MMA at $73.13. We show semiannual and monthly risky levels at $72.76 and $74.04.

One more double-digit year-to-date loser is Mohawk Industries (MHK) ($132.41), down 11.1%. Analysts expect the maker of carpets to report EPS of $1.19 after the closing bell today. The stock set an all-time intraday high at $155.48 on Jan. 23, then traded as low as $128.54 on April 8. The stock is below its 200-day SMA at $134.86.

The weekly chart shifts to positive given a close this week above its five-week MMA at $135.71, as its weekly stochastic is rising. Semiannual value levels are $128.62 and $118.03, with monthly and quarterly risky levels at $157.20 and $159.50.

Note: Your investment policy among these stocks depends on whether or not you are a buyer on weakness or a seller of strength. We advocate using a GTC (good until cancelled) limit order to buy weakness to a value level or to sell strength to a risky level.


Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

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 are listed in red.

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.)


Crunching the Numbers with Richard Suttmeier: Earnings and Where to Buy & Sell

This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.

EPS Date is the day the company reports their quarterly results.

EPS Estimate is the earnings per share estimate from Wall Street analysts.

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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