Kraft Foods, Whole Foods, Trucker Con-way Lead Convoy of 5 Reports

NEW YORK (TheStreet) -- Five companies will report their quarterly results after the closing bell on Wednesday.

The biggest winner year to date is trucker Con-way (CNW), with a gain of 20%. The biggest loser is Whole Foods Market (WFM), which is down 35%.

Gold miner Barrick Gold (ABX) has a year-to-date gain of 5.4%, while FNF Group (FNF), a provider of title insurance to the housing market, has risen 4.5%. Kraft Foods (KRFT) is up 7.1% year to date.

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Let's take a look at the stock profiles. Two "crunching the numbers" tables follow.

Barrick Gold ($18.59) traded as high as $21.45 on Feb. 25, and as low as $15.47 on May 28. It has bounced around its 200-day simple moving average since March 26 with the average now at $18.15.

Analysts expect the company to report earnings per share of 14 cents. Barrick has a 12-month trailing price-to-earnings ratio of 14.5 and dividend yield of 1.1%.

The weekly chart is positive with its five-week modified moving average at $18.34. Semiannual and monthly value levels are $17.82 and $15.72, respectively, with a weekly risky level at $19.99.

Con-way ($47.56) set a multiyear intraday high at $50.98 on July 1, and the stock is below its 50-day SMA at $48.26 with the 200-day SMA at $42.76.

Analysts expect the company to report earnings of 75 cents per share. It has a 12-month trailing P/E ratio of 27.1 and dividend yield of 0.8%.

The weekly chart is negative with its five-week MMA at $48.09. Semiannual and monthly value levels are $46.47 and $44.17, respectively, with a weekly risky level at $51.92.

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FNF Group ($26.82) set an all-time intraday high at $28.90 on July 1. The stock is below its 50-day SMA at $27.39 and above its 200-day SMA at $25.77.

Analysts expect the company to report earnings of 48 cents per share. FNF has a 12-month trailing P/E ratio of 16.2 and dividend yield of 2.7%.

The weekly chart is negative with its five-week MMA at $27.33. A weekly pivot is $27.12 with semiannual risky levels at $29.16 and $34.13.

Kraft Foods ($57.76) traded as high as $61.10 on July 8, and is below its 50-day SMA at $59.27 with its 200-day SMA at $55.73.

Analysts expect the company to report earnings of 83 cents per share. Kraft has a 12-month trailing P/E ratio of 21.5 and dividend yield of 3.6%.

The weekly chart is negative with its five-week MMA at $58.88. A monthly pivot is $58.63 with a weekly risky level at $59.79.

Whole Foods Market ($37.68) set an all-time intraday high at $65.59 on Oct. 28. The stock has been below its 200-day SMA since Feb. 13 with this average now at $50.34.

Analysts expect the company to report earnings of 39 cents per share. It has a 12-month trailing P/E ratio of 24.2 and dividend yield of 1.3%.

The weekly chart is negative but oversold with its five-week MMA and at $38.81 and its 200-week SMA at $41.93. Monthly and annual value levels at $35.44 and $35.16, respectively, with weekly and quarterly risky levels at $39.17 and $50.95, respectively. .

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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 KRAFT FOODS GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate KRAFT FOODS GROUP INC (KRFT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to other companies in the Food Products industry and the overall market, KRAFT FOODS GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 38.12% is the gross profit margin for KRAFT FOODS GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.76% is above that of the industry average.
  • KRFT, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 3.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • In its most recent trading session, KRFT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Currently the debt-to-equity ratio of 1.88 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, KRFT maintains a poor quick ratio of 0.76, which illustrates the inability to avoid short-term cash problems.

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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