Disney, Groupon, Tidewater, Take-Two Continue Stream of Earnings

NEW YORK (TheStreet) -- The five companies profiled in this post are scheduled to report their quarterly results after the closing bell on Tuesday.

On July 10, I wrote about 12 water utilities companies, including American States Water (AWR), which is reporting today. Its stock is up 7.1% year to date.

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One of the best-performing Dow component is Disney (DIS). Its stock came close to its all-time intraday high on Monday. The shares are up 14% year to date.

Groupon (GRPN), an online seller of coupons, had a strong session on Monday, rising almost 9%, but the stock is still down 40% year to date.

Tidewater (TDW), which operates vessels for the oil and gas industry, also rebounded pre-earnings on Monday, but the stock remains down 18% year to date.

The fifth profile is videogame publisher Take-Two Interactive (TTWO), whose stock is up 29% so far this year.

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

American States Water ($30.77) set an all-time intraday high at $34 on July 1, and closed Monday between its 200-day simple moving average at $29.74 and its 50-day SMA at $31.30.

Analysts expect the company to report earnings per share at 42 cents. American States has a 12-month trailing price-to-earnings ratio of 20.4 and a dividend yield of 2.8%.

The weekly chart is negative with its five-week modified moving average at $31.12 and its 200-week SMA at $22.79. Semiannual and annual value levels are $26.56 and $26.12, respectively, with a semiannual pivot at $30.88 and monthly and weekly risky levels at $31.33 and $32.29, respectively.

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Disney ($87.24) set an all-time intraday high at $87.63 on July 16, leading the Dow Jones Industrial Average to its all-time intraday high at 17151.56 on July 17. Disney is above all five key moving averages in today's first "crunching the numbers" table.

Analysts expect the company to report earnings of $1.17 per share. Disney has a 12-month trailing P/E ratio of 20.7 and a dividend yield of 1%.

The weekly chart is positive but overbought with its five-week MMA at $85.46. Semiannual and annual value levels are $71.57 and $64.77, respectively, with a semiannual pivot at $84.49 and quarterly and monthly risky levels at $87.98 and $92.49, respectively.

Groupon ($7.02) has been below its 200-day SMA since Feb. 21, when the average was $9.72, and it traded as low as $5.18 on May 7 with the 200-day SMA now at $8.44.

Analysts expect the company to report a loss of 4 cents per share. Because it is losing money, Groupon doesn't have a 12-month trailing P/E ratio. It doesn't pay a dividend.

The weekly chart is positive with its five-week MMA at $6.54. A quarterly value level is $4.33 with monthly and weekly pivots at $6.57 and $6.97, respectively.

Tidewater ($48.47) has been below its 200-day SMA at $53.02 since July 7, and it traded as low as $46.60 on Friday. The stock is below all five moving averages in today's first "crunching the numbers" table.

Analysts expect the company to report earnings of 93 cents per share. Tidewater has a 12-month trailing P/E ratio at 11.7 and a dividend yield of 2.1%.

The weekly chart is negative with its five-week MMA at $50.32 and its 200-week SMA at $52.16. A monthly value level is $45.65 with weekly and semiannual risky levels at $49.80 and $54.16, respectively.

Take-Two Interactive ($22.34) set a 52-week intraday high at $23.67 on July 28, and is above its 50-day and 200-day SMAs at $21.62 and $19.60, respectively.

Analysts expect the company to report a loss of 43 cents per share. Take-Two has a 12 month trailing P/E ratio of 8.8, and it doesn't pay a dividend.

The weekly chart is positive but overbought with its five-week MMA at $22.21. Semiannual value levels are $20.86 and $17.32 with quarterly and monthly risky levels at $23.99 and $24.59, 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 DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISNEY (WALT) CO (DIS) 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

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

  • Powered by its strong earnings growth of 30.12% and other important driving factors, this stock has surged by 32.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DIS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DISNEY (WALT) CO has improved earnings per share by 30.1% 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, DISNEY (WALT) CO increased its bottom line by earning $3.38 versus $3.12 in the prior year. This year, the market expects an improvement in earnings ($4.19 versus $3.38).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 26.7% when compared to the same quarter one year prior, rising from $1,513.00 million to $1,917.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 10.4%. Growth in the company's revenue appears to have helped boost 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 Media industry and the overall market, DISNEY (WALT) CO's return on equity exceeds that of both the industry average and the S&P 500.

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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