NEW YORK (TheStreet) -- Six companies report their quarterly results before the opening bell on Wednesday. Five of these stocks have year-to-date gains of 16% to 27% led by health care providers Humana (HUM - Get Report) and WellPoint (WLP), up 27% and 25%, respectively.
Garmin (GRMN - Get Report) has navigated a year-to-date gain of 24% while integrated oil and gas company Hess (HES - Get Report) has a gain of 20%. Rounding out the winners is Goodyear Tire (GT - Get Report), up 16%.
Let's take a look at the stock profiles. Two "crunching the numbers" tables follow.
Garmin ($57.52) set a multiyear intraday high at $62.05 on July 3 and is below its 50-day simple moving average at $58.71 with its 200-day SMA at $52.32.
Analysts expect the company to report earnings per share of 75 cents. Garmin has a 12-month trailing price-to-earnings ratio of 20.9 with a dividend yield of 3.3%.
The weekly chart is negative with its five-week modified moving average at $57.88. Annual value levels are $53.06 and $50.81 with a semiannual pivot at $56.72 and weekly and monthly risky levels at $59.18 and $61.70, respectively.
Goodyear Tire ($27.76) set a multiyear intraday high at $28.70 on July 23 with the stock on the cusp of its 21-day SMA at $27.79 and is above its 50-day and 200-day SMAs at $27.03 and $24.95, respectively.
Analysts expect the company to report earnings of 80 cents. Goodyear has a 12 month trailing P/E ratio of 10.0 with a dividend yield at 0.9%.
The weekly chart is positive but overbought with its five-week MMA at $27.49. Semiannual and annual value levels are $25.85 and $18.64, respectively, with a quarterly pivot at $28.17 and weekly and monthly risky levels at $29.09 and $29.75, respectively.
Hess ($99.83) set a multiyear intraday high at $100.98 on July 24. The stock is above all key moving averages in today's first "crunching the numbers" table.
Analysts expect the company to report earnings of $1.21. Hess has a 12 month trailing P/E ratio of 21.1 with a dividend yield of 1%.
The weekly chart is positive but overbought with its five-week MMA at $97.25. Annual and semiannual value levels are $93.89 and $92.59, respectively, with an annual pivot at $98.57 and weekly and quarterly risky levels at $104.25 and $106.81, respectively.
Humana ($130.93) set an all-time intraday high at $134.93 on July 22 and is above all five moving averages in today's first table.
Analysts expect the company to report earnings of $2.19. Humana has a 12 month trailing P/E ratio of is 17.1 and dividend yield at 0.9%.
The weekly chart is positive but overbought with its five-week MMA at $126.87. Semiannual and quarterly value levels are $116.89 and $113.20, respectively, with weekly and semiannual risky levels at $132.16 and $133.52, respectively.
Lumber Liquidators ($55.07) traded as high as $119.98 back on Nov. 18 and in 2014 has been below its 200-day SMA since March 21 with this average now at $92.53. The stock traded as low as $53.27 on July 15.
Analysts expect the company to report earnings of 60 cents. Lumber Liquidators has a 12-month trailing P/E ratio of 21.5 but does not pay a dividend.
The weekly chart is negative but oversold with its five-week MMA and its 200-week SMA at $65.15 and $52.20, respectively. A weekly pivot is $57.14 with monthly and semiannual risky levels at $67.16 and $70.42. .
WellPoint ($115.57) set an all-time intraday high at $116.26 on July 22 and is above all five key moving averages in the first "crunching the numbers" table.
Analysts expect the company to report earnings of $2.27. Wellpoint has a 12 month trailing P/E ratio of 15.3 and dividend yield of 1.5%.
The weekly chart is positive but overbought with its five-week MMA at $110.33 in a parabolic formation. Semiannual and quarterly value levels are $108.51 and $104.20, respectively, with a monthly pivot at $111.18.
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.
TheStreet Ratings team rates HUMANA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUMANA INC (HUM) 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, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, 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:
- Compared to its closing price of one year ago, HUM's share price has jumped by 45.13%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HUM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.0%. Since the same quarter one year prior, revenues rose by 11.7%. 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.
- HUM's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 62.86% to $671.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.00%.
- You can view the full analysis from the report here: HUM Ratings Report
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.