How to Trade Earnings for Lowe's, Target, Tiffany, 4 Others

NEW YORK (TheStreet) -- Today we crunch the numbers on four companies that report their quarterly earnings after the closing bell on Tuesday and three that report earnings before the opening bell on Wednesday.

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

Analog Devices (ADI) ($51.98), up 2.1% year to date. Analysts expect the maker of high-performance analog, mixed-signal and integrated circuits to report earnings per share of 56 cents after the closing bell on Tuesday. The stock set a multiyear intraday high at $54.40 on April 3, then traded as low as $50.07 on April 28, staying above its 200-day simple moving average at $49.66. The weekly chart shifts to negative, given a close this week below its five-week modified moving average at $51.70. Weekly and semiannual value levels are $50.76 and $50.00, respectively, with a quarterly pivot at $71.76 and semiannual and monthly risky levels at $52.50 and $53.79, respectively.

Salesforce.com (CRM) ($53.23), down 3.6% year to date. Analysts expect the provider of on-demand business software to report a loss of 3 cents a share after the closing bell on Tuesday. The stock set an all-time intraday high at $67.00 on Feb. 28, then traded as low as $48.18 on April 29, and is now below its 200-day SMA at $54.22. The weekly chart is negative but oversold, with its five-week MMA at $53.64. Weekly and quarterly value levels are $49.25 and $44.90, respectively, with a monthly risky level at $61.06.

Intuit (INTU) ($77.07), up 1% year to date. Analysts expect the maker of financial software for individuals and small businesses to report EPS of $3.40 after the closing bell on Tuesday. The stock set an all-time intraday high at $82.40 on March 11, then traded as low as $72.44 on April 11, and has been above its 200-day SMA since July 2013, with this average now at $72.35. The weekly chart shifts to negative given a close this week below its five-week MMA at $75.88. Quarterly and weekly value levels are $73.73 and $71.24, respectively, with semiannual risky levels at $77.46 and $85.05.

Lowes (LOW) ($45.55), down 8.1% year to date. Analysts expect the retailer of home repair products to report EPS of 61 cents before the opening bell on Wednesday. The stock set an all-time intraday high at $52.08 on Nov. 15, then started a downtrend to as low as $44.13 on May 15, below its 200-day SMA at $47.68. The weekly chart is negative, with its five-week MMA at $46.53. Weekly and semiannual value levels are $44.14 and $42.87, respectively, with monthly and quarterly risky levels at $50.06 and $50.39, respectively.

Tidewater (TDW) ($51.00), down 14% year to date. Analysts expect the provider of a fleet of ships that services the offshore energy industry to report EPS of 61 cents after the closing bell on Tuesday. The stock has been below its 200-day SMA since Jan. 16, trading as low as $45.51 on Feb. 5 before beginning an uptrend. Tidewater is trading between its 50-day SMA at $48.92 and its 200-day SMA at $54.42. The weekly chart is positive, with the stock between its five-week MMA at $50.06 and its 200-week SMA at $51.59. A quarterly value level is $48.85 with a weekly pivot at $51.36 and monthly and semiannual risky levels at $54.25 and $54.77, respectively.

Target (TGT) ($58.29), down 7.9% year to date. Analysts expect the large general merchandise and food discount chain to report EPS of 70 cents before the opening bell on Wednesday. The stock has been below its 200-day SMA since August 21, trading as low as $54.66 on Feb. 5, with the 200-day SMA now at $62.29. The weekly chart is negative, with the stock below its 200-week SMA at $58.43, and its five-week MMA at $59.56. Annual values are $54.45 and $53.25, with weekly and monthly risky levels at $60.48 and $60.95, respectively.

Tiffany (TIF) ($90.75), down 2.2% year to date. Analysts expect the luxury jewelry chain to report EPS of 77 cents before the opening bell on Wednesday. The stock set an all-time intraday high at $94.88 on March 6, then traded as low as $84.12 on April 15, staying above its 200-day SMA now at $84.87. The weekly chart is positive, with its five-week MMA at $88.98. Weekly and annual value levels are $84.70 and $78.01, respectively, with semiannual and monthly risky levels at $93.37 and $95.17.

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 good-'til-cancelled limit order to buy weakness to a value level or to sell strength to a risky level.

Check out our number-crunching charts on page 2 to help you make buy and sell decisions.

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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 and 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.

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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