NEW YORK (TheStreet) -- Former Dow component Alcoa (AA) reports quarterly results after the closing bell Tuesday. On Monday, I wrote "Caterpillar, Intel Have Led the Dow 30 Higher as Earnings Begin"." If Alcoa were still in the Dow Jones Industrial Average, it would be the best performer. Its shares are up 39% year to date.
Note that in the Dow tables presented Monday, the new components did not help the index achieve the 17,000 milestone. Goldman Sachs (GS) is down 4.4% year to date, Nike (NKE) is down fractionally and Visa (V) is down 2.8%.
Today I added a column showing 12-month trailing price-to-earnings ratios to my first "Crunching the Numbers" table, just before the five key moving averages. In general, I believe P/E ratios have become stretched.
Let's take a look at the stock profiles:
Alcoa ($14.74) is up 39% year to date and is above all five moving averages in the first table. Analysts expect Alcoa to report earnings per share of 13 cents after the closing bell Tuesday. The company's 12-month trailing P/E ratio is elevated at 40.5. The stock traded as high as $15.18 on June 26.
The weekly chart is positive but overbought with its five-week modified moving average at $14.34. Semiannual and quarterly value levels are $13.11 and $12.19, respectively, with weekly and monthly risky levels at $15.34 and $15.61, respectively.
Bob Evans Farms (BOBE) ($50.13) is down just 0.9% year to date and is below its 200-day simple moving average at $50.87. Analysts expect the family restaurant chain and provider of food products to report EPS of 42 cents after the closing bell Tuesday. Bob Evans has an elevated P/E at 30.5.
The weekly chart is positive with its five-week MMA $49.27. Annual and monthly value levels are $46.65 and $42.59, respectively, with a semiannual pivot at $49.24, and quarterly and semiannual risky levels at $54.41 and $58.72, respectively.
Family Dollar (FDO) ($64.74) is down 0.4% year to date and is below its 21-day simple moving average at $66.88. Analysts expect the discount retailer to report EPS of 90 cents before the opening bell on July 10. The company has an elevated P/E ratio at 20.5.
The weekly chart is positive with its five-week MMA $63.76. Annual and quarterly value levels are $64.60 and $63.46, respectively, with weekly and semiannual risky levels at $68.45 and $84.89, respectively.
WD-40 (WDFC) ($75.58) is up 1.2% year to date and is above all five key moving averages. Analysts expect the manufacturer of the miracle lubricant to report EPS of 72 cents after the closing bell on Wednesday. The company has an elevated P/E ratio at 28.4.
The weekly chart is positive with its five-week MMA $74.45. Monthly and weekly value levels are $74.78 and $74.15, respectively, with semiannual and quarterly risky levels at $76.42 and $78.17, respectively.
Wells Fargo (WFC) ($53.00) is up 16% year to date and is above all five key moving averages. Analysts expect this "too big to fail" money center bank to report EPS of $1.01 before the opening bell on Friday. The banking giant has a reasonable P/E ratio at 13.1.
The weekly chart is positive but overbought with its five-week MMA $51.77. Semiannual value levels are $50.95 and $43.27 with a quarterly pivot at $53.09 and monthly and weekly risky levels at $54.55 an $54.56, respectively.
Only July 7 I wrote, "Wells Fargo, PNC Financial Lead 24 Banks in the KBW Banking Index", where I noted that all 24 banks seemed to be anticipating better-than-expected earnings based upon the technicals, but I provide some reasons for caution.