NEW YORK (TheStreet) -- Today's pre-earnings stock profiles includes Dow Jones Industrial Average component Boeing (BA - Get Report). The aerospace giant is down 6% year to date, with the Dow Jones up 2.9%.
There are three stocks from the transportation sector reporting, and the Dow Transportation Average is up 13% year to date. Delta Airlines (DAL - Get Report) is a leader -- up 35% year to date. On the rails, Norfolk Southern (NSC - Get Report) is up 14%. On the roads, trucker and logistics company Landstar (LSTR - Get Report) is up 12%.
Let's take a look at the stock profiles. Two "crunching the numbers" tables follow to help you make buy-and-sell decisions.
Boeing ($128.30) has been below its 200-day simple moving average of $130.33 since June 25, as analysts expect the company to report earnings per share of $2.01 before the opening bell on Wednesday. The company's 12-month trailing earnings per share ratio is 17.1, with a dividend yield at 2.3%.
The weekly chart is negative, with its five-week modified moving average at $129.48. Semiannual and annual value levels are $122.99 and $99.29, respectively, with weekly and semiannual risky levels at $130.54 and $132.27, respectively.
Delta Airlines ($37.15) set an all-time intraday high at $42.65 on June 5, and is below its 21-day and 50-day SMAs at $38.10 and $38.99 -- but above its 200-day SMA at $32.68.
Analysts expect the company to report EPS of $1.03 before the opening bell on Wednesday. The company's 12-month trailing price-to-earnings ratio is at 10.9, with a dividend yield at 0.7%.
The weekly chart is negative, with its five-week MMA at $37.96. A semiannual value level is $28.79, with quarterly and monthly risky levels at $39.14 and $39.32, respectively.
Landstar ($64.42) traded to an all-time intraday high at $65.79 on May 30, and is above all five moving averages in the first "crunching the numbers" table.
Analysts expect the company to report EPS of 78 cents before the opening bell on Wednesday. The company's 12-month trailing P/E ratio is elevated at 24.5, with a paltry dividend yield of 0.4%.
The weekly chart shifts to negative given a close this week below the five-week MMA at $63.98. Quarterly and semiannual value levels are $62.18 and $61.51, respectively, with weekly and monthly risky levels at $65.31 and $66.22, respectively.
Up next: more technical analysis, plus charts to help you make trading decisions.
Norfolk Southern ($106.22) set an all-time intraday high at $106.37 on Monday, and is above all five moving averages in the first "crunching the numbers" table.
Analysts expect the company to report EPS of $1.74 before the opening bell on Wednesday. The company's 12-month trailing P/E ratio is 17.5, with a dividend yield of 2%.
The weekly chart is positive but overbought, with its five-week MMA at $103.16. Monthly and semiannual value levels are $105.43 and $105.19, respectively, with a weekly risky level at $107.61.
Owens Corning ($36.99) has been below its 200-day SMA at $40.18 since June 20, trading as low as $36.40 on July 17.
Analysts expect the company to report EPS of 47 cents before the opening bell on Wednesday. The company's 12-month trailing P/E ratio is 21.3, with a dividend yield of 1.7%.
The weekly chart is negative but oversold, with its five-week MMA at $38.74 and its 200-week SMA at $35.18. A weekly pivot is $36.99, with semiannual risky levels at $42.97 and $44.31.
Pepsico ($89.91) set an all-time high at $91.39 on July 14, and it is above all five moving averages in the first "crunching the numbers" table.
Analysts expect the company to report EPS of $1.23 before the opening bell on Wednesday. The company's 12-month trailing P/E ratio is 20.7, with a dividend yield of 2.9%.
The weekly chart is positive but overbought, with its five-week MMA at $88.85. Monthly and semiannual value levels are $85.50 and $84.83, respectively, with a quarterly pivot at $90.64, and semiannual and weekly risky levels at $91.53 and $93.01, respectively.
Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics
This table provides the technical status for the stocks profiled in today's report.
The 12-month trailing price to earnings ratio
The dividend yield
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.
Up next: more buy-and-sell charts.
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.
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.
TheStreet Ratings team rates PEPSICO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEPSICO INC (PEP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PEPSICO INC has improved earnings per share by 14.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PEPSICO INC increased its bottom line by earning $4.32 versus $3.92 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $4.32).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Beverages industry average. The net income increased by 13.1% when compared to the same quarter one year prior, going from $1,075.00 million to $1,216.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, PEPSICO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for PEPSICO INC is rather high; currently it is at 58.52%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.63% trails the industry average.
- You can view the full analysis from the report here: PEP Ratings Report