Ready for a Beer? Anheuser-Busch and Coors Report Earnings

NEW YORK (TheStreet) -- Today we crunch the numbers on nine companies that report quarterly earnings reports before the opening bell on Wednesday.

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

AOL (AOL) ($43.54), down 6.6% year to date. Analysts' expect the Internet service provider to report earnings per share of 33 cents before the opening bell on Wednesday. The stock traded as high as $53.28 on Jan. 16 then as low as $40.52 staying above its 200-day simple moving average now at $40.97. The weekly chart is positive with its five-week modified moving average at $43.30. A weekly value level is $41.70 with monthly and quarterly risky levels at $51.80 and $55.84.

Sotheby's (BID) ($44.80), down 7.8% year to date. Analysts' expect the auction house to report and EPS loss of 8 cents before the opening bell on Wednesday. The stock traded as high as $51.23 on Feb. 27 then as low as $38.83 on April 14 before rebounding to its 200-day SMA at $44.75 on Monday. The weekly chart is positive with its five-week MMA at $43.38. Quarterly and weekly value levels are $41.38 and $36.64 with an annual pivot at $43.88 and monthly and annual risky levels at $49.02 and $51.43.

Anheuser-Busch (BUD) ($107.38), up 0.9% year to date. Analysts' expect the brewery to report EPS of $1.01 before the opening bell on Wednesday. The stock traded as low as $93.72 on Feb. 4 then as high as $111.38 on April 29. The weekly chart is positive but overbought with its five-week MMA at $106.10. Semiannual and annual value levels are $102.27 and $85.92 with a weekly pivot at $107.85 and monthly and quarterly risky levels at $113.08 and $118.18.

Chesapeake Energy (CHK) ($28.31), up 4.3% year to date. Analysts' expect the oil and gas company to report EPS of 47 cents before the opening bell on Wednesday. The stock traded as low as $23.92 on Feb. 27 then moved above its 200-day SMA on March 27 and traded as high as $29.48 on April 24. The 200-day SMA is now at $26.21. The weekly chart is positive with its five-week MMA at $27.35 and its 200-week SMA at $24.00. Semiannual value levels are $26.27 and $20.50 with a monthly pivot at $28.37 and annual risky level at $35.50.

Health Net (HNT) ($33.80), up 13.9% year to date. Analysts' expect the managed care organization to report EPS of 43 cents before the opening bell on Wednesday. The stock traded as high as $35.70 on March 11 then traded as low as $30.39 on April 17 and is above its 200-day SMA at $31.57. The weekly chart is positive with its five-week MMA at $33.31 and its 200-week SMA at $29.02. A weekly value level is $32.12 with a semiannual pivot at $33.13 and monthly and annual risky levels at $34.69 and $36.55.

Hertz Global (HTZ) ($29.40), up 2.7% year to date. Analysts' expect the car rental chain to report EPS of 10 cents before the opening bell on Wednesday. The stock traded as low as $24.82 on Feb. 3 holding its 200-day SMA. The 200-day SMA now at $25.59 held three more times before the stock traded as high as $29.68 on Monday. The weekly chart is positive with its five-week MMA at $27.90. Monthly and quarterly value levels are $28.33 and $28.05.

Humana (HUM) ($110.12), up 6.7% year to date. Analysts' expect the provider of health care services to report EPS of $1.94s before the opening bell on Wednesday. The stock set an all-time intraday high at $119.93 on March 20 then traded as low as $103.89 on April 17. The weekly chart shifts to negative given a close this week below its five-week MMA at $108.79 as its weekly stochastic is declining. Annual value levels are $99.27 and $85.49 with a weekly pivot at $109.44 and semiannual risky levels at $111.32 and $112.88.

Lamar Advertising (LAMR) ($49.80), down 4.7% year to date. Analysts' expect the outdoor advertising company to report EPS of 7 cents before the opening bell on Wednesday. The stock traded as low as $46.79 on Jan. 31 holding its 200-day SMA then traded as high as $54.48 on April 23. The weekly chart is negative with its five-week MMA at $50.75. Weekly and semiannual value levels are $48.60 and $43.24 with semiannual and quarterly risky levels at $54.35 and $55.96.

Molson Coors (TAP) ($60.55), up 7.8% year to date. Analysts' expect the brewery to report EPS of 36 cents before the opening bell on Wednesday. The stock set an all-time intraday high at $60.90 on April 4 then traded as low as $56.60 on April 15. The weekly chart is positive but overbought with its five-week MMA at $58.77. Weekly and quarterly value levels are $59.34 and $54.80 with a monthly risky level at $62.59.

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 & Where to Buy & Where to 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.

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.

More from Opinion

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Trump Blinks on China Trade War That's Looking Harder to Win

Trump Blinks on China Trade War That's Looking Harder to Win

Monday Madness: GE, China, and Micron

Monday Madness: GE, China, and Micron

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly