NEW YORK (TheStreet) -- My coverage of this week's earnings parade begins with Masco (MAS - Get Report), a maker of cabinets and faucets, reporting after the closing bell today. The company is one of the components of the housing sector index I profiled on Friday.
MDC Holdings (MDC - Get Report), a homebuilder and another component of the housing index, reports before the opening bell Tuesday. Masco's shares are down 8.2% year to date, and MDC is down 11%. The housing index is down 3.8%.
The biggest gainer year to date in today's "crunching the numbers" table is the auto-parts provider TRW Automotive (TRW) with a year-to-date gain of 42%
Let's take a look at the stock profiles. Two "crunching the numbers" tables follow.
International Paper (IP - Get Report) ($49.92) was volatile last week, trading as low as $47.06 on Tuesday and as high as $51.98 on Thursday. It ended the week above all five moving averages in today's first table.
Analysts expect the company to report earnings per share of 82 cents before the opening bell on Tuesday. The company has a 12-month trailing price-to-earnings ratio is 15.1 and dividend yield of 2.8%.
The weekly chart is positive but overbought its five-week modified moving average at $48.78. Semiannual and annual value levels are $44.03 and $35.03, respectively, with monthly and semiannual risky levels at $51.11 and $53.88, respectively.
Masco ($20.90) is below all five moving averages in today's first table except the 200-week.
Analysts expect the company to report earnings of 28 cents per share after the closing bell on Monday. The company has a 12-month trailing P/E of 24.6 and dividend yield of 1.8%.
The weekly chart is negative with its five-week MMA at $21.42. A semiannual value level is $17.93 with weekly and monthly risky levels at $22.01 and $23.00.
MDC Holdings ($28.59) is below all five moving averages in today's first table.
Analysts expect the company to report a loss of 44 cents per share before the opening bell on Tuesday. The company has a 12-month trailing P/E of 13.4, and it doesn't pay a dividend.
The weekly chart is negative with its five-week MMA at $29.07 and its 200-week SMA at $29.02. A semiannual pivot is $28.73 with weekly and monthly risky levels at $30.12 and $30.71, respectively.
Pfizer ($30.19) is between its 50-day SMA at $29.83 and its 200-day SMA at $30.73.
Analysts expect the company to report earnings of 56 cents per share before the opening bell on Tuesday. The company has a 12-month trailing P/E ratio of 13.3 and dividend yield of 3.4%.
The weekly chart is positive with its five-week MMA at $30.14. Semiannual and annual value levels are $28.66 and $24.86, respectively, with a weekly pivot at $30.39 and monthly and quarterly risky levels at $31.06 and $34.31, respectively.
Analysts expect the company to report earnings of 2 cents per share before the opening bell on Tuesday. The company has a 12-month trailing P/E of 43, and it doesn't pay a dividend.
The weekly chart is positive but overbought its five-week MMA at $3.39 and its 200-week SMA at $2.60. A monthly value level is $3.08 with a weekly pivot at $3.54 and semiannual risky levels at $4.16 and $4.36. .
TRW Automotive ($105.47) is above all five key moving averages in the first "crunching the numbers" table.
Analysts expect the company to report earnings of $2.12 per share before the opening bell on Tuesday. The company has a 12-month trailing P/E of 14, and it doesn't pay a dividend.
The weekly chart is positive but overbought with its five-week MMA at $94.86. Quarterly and semiannual value levels are $100.51 and $94.02, respectively, with a weekly pivot at $105.35,
United Parcel Service ($103.57) is above all five key moving averages in the first "crunching the numbers" table.
Analysts expect the company to report earnings of $1.24 per share before the opening bell on Tuesday. The company has a 12-month trailing P/E of 22.4 and a dividend yield of 2.6%.
The weekly chart is positive but overbought with its five-week MMA at $102.70. Weekly and semiannual value levels are $102.58 and $102.34, respectively, with a quarterly pivot at $103.80 and semiannual risky level at $113.60,
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.
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 UNITED PARCEL SERVICE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) 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 revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Air Freight & Logistics industry and the overall market, UNITED PARCEL SERVICE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $2,267.00 million or 28.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.16%.
- UNITED PARCEL SERVICE INC's earnings per share declined by 9.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED PARCEL SERVICE INC increased its bottom line by earning $4.62 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($5.08 versus $4.62).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: UPS Ratings Report