CVS Caremark, McDermott Start This Week’s Marathon of Earnings

NEW YORK (TheStreet) -- Three of the six of companies profiled today report quarterly results after the closing bell Monday and three report before the opening bell on Tuesday.

Car rental service company, Avis Budget (CAR) reports after the closing bell and is the biggest winner year to date with a gain of 41%.

The energy services company covering the offshore oil and gas industry, McDermott (MDR) also reports after today's closing bell and this stock has the largest year to date loss down 22%.

Marathon Oil (MRO) completes the trio that reports after the close today and this stock as a gain of 9.4% year to date.

The parent of Outback Steakhouse, Carrabba's and Bonefish, Bloomin Brands (BLMN), reports before the opening bell on Tuesday and is down 19% year to date.

The integrated pharmacy services provider and drug store chain CVS Caremark (CVS) also reports Tuesday before the open and this stock is up 6.9% year to date.

Rounding today's field is the producer of construction aggregates, asphalt mix, concrete and cement Vulcan Materials (VMC) reports before the opening bell Tuesday boasting a year-to-date gain of 6.6%.

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

Bloomin Brands ($19.43) has been below its 200-day simple moving average at $23.07 since April 4 and traded as low as $19.18 on August 1.

Analysts expect the company to report earnings per share at 29 cents. Bloomin Brands has a 12 month trailing price-to-earnings ratio of 17.1 but does not pay a dividend.

The weekly chart is negative with its five-week modified moving average at $21.04. A monthly value level is $18.25 with a weekly risky level at $20.13.

Avis Budget ($56.99) drove to an all-time intraday high at $61.95 on July 3 and is now below its 50-day SMA at $58.58 with the 200-day SMA at $46.32.

Analysts expect the company to report earnings of 63 cents. Avis has a 12 month trailing P/E ratio of 22.4 but does not pay a dividend.

The weekly chart is negative with its five-week MMA at $58.17. A semiannual value level is $49.60 with quarterly and weekly risky levels at $58.04 and $58.16, respectively.

CVS Caremark ($76.49) set an all-time intraday high at $79.43 on June 6 and ended last week below its 50-day SMA at $77.12 with the 200-day SMA at $71.60.

Analysts expect the company to report earnings of $1.10. CVS has a 12 month trailing P/E ratio of 17.6 and a dividend yield at 1.4%.

The weekly chart shifts to negative given a close this week below its five-week MMA at $77.00. Semiannual and annual value levels are $66.14 and $61.13, respectively, a weekly pivot at $75.26 and quarterly and semiannual risky levels at $79.63 and $79.91, respectively.

McDermott ($7.19) has been trading back and forth around its 200-day SMA at $7.84 since June 9 closing below it last Friday. The stock is below all five moving averages in today's first "crunching the numbers" table.

Analysts expect the company to report a loss of 17 cents. McDermott does not have a P/E ratio and does not pay a dividend.

The weekly chart is negative with its five-week MMA at $7.58. A quarterly pivot is $7.14 with monthly and weekly risky levels at $7.51 and $7.65, respectively.

Marathon Oil ($38.61) set an all-time intraday high at $40.74 on July 24 then fell below its 50-day SMA at $38.87 on July 31 with an August 1 low at $38.04.

Analysts expect the company to report earnings of 74 cents. Marathon has a 12 month trailing P/E ratio of 13.0 with a dividend yield of 2%.

The weekly chart shifts to negative given a close this week below its five-week MMA at $38.99 with its 200-week SMA at $31.04. Annual and monthly value levels are $36.77 and $36.42, respectively, with an annual pivot at $38.24 and semiannual and weekly risky levels at $40.09 and $41.43, respectively.

Vulcan Materials ($63.34) set a multiyear intraday high at $69.50 on March 4 then traded as low as $58.88 on May 22. The stock is between its 200-day SMA at $61.59 and its 50-day SMA at $63.71.

Analysts expect the company to earnings of 37 cents. Vulcan has an elevated 12 month trailing P/E ratio of 116.6 with a paltry dividend yield of 0.4%.

The weekly chart shifts to negative given a close this week below its five-week MMA at $64.08. Semiannual and annual value levels are $57.68 and $56.59, respectively, with weekly and annual risky levels at $65.25 and $68.52, 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.

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, although positions may change at any time.

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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