Ciena, Sanderson Farms, Four Others Post Gains After Earnings

NEW YORK (TheStreet) -- Today I crunch the numbers on six companies that have rallied since they have reported during the past two weeks.

Five out of the six beat analysts earnings estimates and the one that missed (by only a penny) offered a positive outlook.

Here are the updated profiles for the post-earnings winners which are followed by two "crunching the numbers" tables.

Brown Shoe (BWS) ($27.99), up 8.3% since May 23, after being down 8.2% year to date. The company beat analysts' earnings-per-share estimates by 4 cents, earning 35 cents. The stock traded as high as $29.65 on May 29, and remains above all five moving averages shown in the first table with the 200-day simple moving average at $24.69.

The weekly chart remains positive with its five-week modified moving average at $26.12. Weekly and semiannual value levels are $26.66 and $25.19, respectively, with a monthly pivot at $27.86 and quarterly risky level at $32.89.

Ciena  (CIEN)($22.23), up 19% since June 2, after being down 22% year to date. The company beat analysts' EPS estimates by 3 cents, earning 6 cents. The stock traded as high as $22.94 on June 6, but closed below its 200-day SMA at $22.79.

The weekly chart is now positive with its five-week MMA at $20.54 and its 200-week SMA at $18.06 which continues to be the low end of a trading range. Weekly and monthly value levels are $20.89 and $19.13, respectively, with a quarterly pivot at $22.81, and semiannual risky levels at $23.09 and $25.51. Investors could have sold this stock at $22.81 on June 6.

Dollar General (DG) ($57.99), up 7.8% since May 30, after being down 11% year to date. The company missed analysts' EPS earnings estimate by a penny, earning 72 cents, but the stock rallied on the company's positive forecast. The stock traded as high as $58.35 on June 6, above its 200-day SMA at $57.58. 

The weekly chart is now positive with its five-week MMA at $56.25. Monthly and annual value levels are $57.04 and $45.67, respectively, a weekly pivot at $57.84 and semiannual and quarterly risky levels at $59.17 and $60.19, respectively.

Sanderson Farms (SAFM) ($96.51), up 11% since May 27, tacking unto a gain of 20% year to date. The company beat analysts' EPS estimates by 53 cents, earning $2.21. The stock set an all-time intraday high at $97.84 on June 5 and remains above all five key moving averages in the first table.

The weekly chart is positive but overbought with its five-week MMA at $86.36. Monthly and quarterly value levels are $90.50 and $69.93, respectively, with a weekly risky level at $97.58.

Toll Brothers (TOL) ($36.88), up 3.9% since May 23, after being down 4.1% year to date. The company beat analysts EPS estimates by 6 cents earning 31 cents. The stock traded as high as $37.20 on May 28 with the stock above all five key moving averages shown in the first table.

The weekly chart is positive with its five-week MMA at $35.68. Weekly and semiannual value levels are $35.90 and $35.68, respectively, with monthly and quarterly risky levels at $39.20 and $43.43, respectively.

Verifone Systems (PAY) ($36.72), up 8.4% since June 2, tacking onto a gain of 26% year to date when it was profiled pre-earnings. The company beat EPS estimates by 6 cents, earning 27 cents. The stock popped to a multiyear intraday high at $36.84 on June 6.

The weekly chart is positive with its five-week MMA at $33.44 and its 200-week SMA at $33.91. A monthly pivot is $36.24 and semiannual risky level at $43.75.

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.

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.< /p>

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.

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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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