How to Trade RadioShack, Nu Skin, Vulcan Materials, WellCare and 3 Others Reporting Tuesday

NEW YORK (TheStreet) -- Today we crunch the numbers on seven companies that report their quarterly earnings reports on Tuesday. We know that five report before the opening bell, but the times for the other two are not shown on our earnings calendar.

The profiles below provide trading guidelines for the stocks in two "crunching the numbers" tables that follow.


Mosaic (MOS) ($49.93), up 5.6% year-to-date. Analysts expect the producer of phosphate and potash crop nutrients to report earnings per share of 58 cents before the opening bell on Tuesday. The stock traded as low as $43.58 on Jan. 30, then traded as high as $50.63 on March 6. It is above its 200-day simple moving average at $46.61.

The weekly chart is positive, with its five-week modified moving average at $48.79. A weekly value level is $48.07, with a quarterly pivot at $49.76. Monthly and semiannual risky levels are at $53.38 and $68.08.

Nu Skin (NUS) ($87.60), down 36.6% year-to-date. Analysts expect the provider of personal care and nutritional products to report EPS of 94 cents before the opening bell on Tuesday. The stock set an all-time intraday high at $140.50 on Jan. 13, then the parabolic bubble popped. The stock got crushed to its 2014 intraday low at $67.51 on Jan. 16, and is below its 200-day SMA at $97.22.

The weekly chart is positive, with its five-week MMA at $84.69. Annual and semiannual value levels are $85.59 and $85.03, with a weekly pivot at $88.87 and semiannual and monthly risky levels at $98.20 and $117.23.

Office Depot (ODP) ($4.25), down 19.7% year-to-date. Analysts expect the office supplies chain to report EPS of 3 cents before the opening bell on Tuesday. The stock set its 2014 intraday high at $5.45 on Jan. 2, then traded as low as $3.84 on April 16. It has been below its 200-day SMA at $4.77 since March 6.

The weekly chart is negative but oversold. Its five-week MMA is at $4.32 and its 200-week SMA at $3.78. Weekly and semiannual value levels are $3.83 and $3.64, with a quarterly pivot at $4.15, and monthly and annual risky levels at $5.43 and $6.87.

RadioShack (RSH) ($1.35), down 48.1% year-to-date. Analysts expect the consumer electronics retailer to report an EPS loss of 51 cents on Tuesday. The stock set its 2014 intraday high at $2.79 on March 3, and set an all-time intraday low at $1.28 on April 17. Its 200-day SMA is at $2.69.

The weekly chart is negative but oversold, with its five-week MMA at $1.84. We consider buying any stock trading between a buck and $3.00 to be an "option on survival," which means that you can lose your entire investment in the event of the company's bankruptcy. An annual value level is $1.33, with a monthly pivot at $1.57 and a semiannual risky level at $6.54.

TravelCenters (TA) ($7.33), down 24.7% year-to-date. Analysts expect the full-service travel chain catering to the needs of truckers to report an EPS loss of 31 cents on Tuesday. The stock began 2014 falling below its 200-day SMA at $9.68, and traded as low as $7.25 on May 1, with its 200-day SMA now at $8.76.

The weekly chart is negative but oversold, with its five-week MMA at $7.90 and its 200-week SMA at $6.36. A weekly value level is $6.72, with a semiannual pivot at $8.02, and semiannual and quarterly risky levels at $9.06 and $9.12.

Vulcan Materials (VMC) ($65.15), up 9.6% year-to-date. Analysts expect the producer of asphalt, concrete and cement to report an EPS loss of 34 cents before the opening bell on Tuesday. The stock set a multiyear intraday high at $69.50 on March 4, then traded as low as $61.38 on April 28. It is above its 200-day SMA at $57.46.

The weekly chart shifts to negative given a close this week below its five-week MMA at $64.93, as its weekly stochastic is declining. Weekly and annual value levels are $61.79 and $53.54, with a quarterly pivot at $64.67, and annual and monthly risky levels at $68.53 and $73.60.

WellCare Health (WCG) ($66.59), down 5.4% year-to-date. Analysts expect the managed care services company that focuses on Medicaid and Medicare to report EPS of 4 cents before the opening bell on Tuesday. The stock set its 2014 intraday high at $73.44 on Jan. 15, then traded as low as $55.16 on Feb. 12. It has been trading back and forth around its 200-day SMA at $66.63 since March 18.

The weekly chart is positive, with its five-week MMA at $64.71, and its 200-week SMA at $51.94. Semiannual and annual value levels are $64.56 and $57.19, with weekly and monthly levels at $68.02 and $71.11.

Your investment policy among these stocks depends on whether you are a buyer on weakness or a seller of strength. We advocate using a GTC (good until canceled) 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 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.

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

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.

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