NEW YORK (TheStreet) – Let's look at five companies that are scheduled to report their quarterly results on Wednesday, including one component of the Dow Jones Industrial Average.
Here are today’s stock profiles. Two “crunching the numbers” tables follow.
Cisco ($25.23) has been above its 200-day simple moving average at $23.07 since May 15.
The stock set its 2014 intraday high at $26.08 on July 22, and fell below its 50-day SMA at $25.13 on Aug. 1, trading as low as $24.69 on Thursday.
Analysts expect the company to report earnings of 48 cents per share after the closing bell on Wednesday. Cisco has a 12-month trailing price-to-earnings ratio of 13.6 and dividend yield of 3%.
The weekly chart shifts to negative given a close on Friday below its five-week modified moving average at $25.12. Cisco’s 200-week simple moving average is at $20.24. Annual and semiannual value levels are $22.15 and $20.47, respectively, with an annual pivot at $25.57 and a quarterly risky level at $27.78.
Deere ($87.16) set its 2014 intraday high at $94.89 on May 5, and has been below its 200-day SMA at $88.37 since July 23.
Analysts expect the company to report earnings of $2.19 per share before the opening bell on Wednesday. Deere has a 12-month trailing P/E ratio of 9.9 and dividend yield of 2.8%.
The weekly chart is negative but oversold with its five-week MMA at $87.97 and its 200-week SMA at $84.02. A weekly value level is $84.33 with annual and quarterly risky levels at $93.63 and $94.41, respectively.
Macy's ($60.12) set an all-time intraday high at $61.26 on April 4, and traded as low as $54.82 on May 7. The stock challenged the high on Monday.
Analysts expect the company to report earnings of 86 cents per share before the opening bell on Wednesday. Macy’s has a 12-month trailing P/E ratio of 14.2 and dividend yield of 2.1%.
The weekly chart is positive with its five-week MMA at $58.79. Weekly and semiannual value levels are $58.39 and $57.61, respectively, with monthly and quarterly risky levels at $61.62 and $63.72, respectively.
NetApp ($39.32) had been below its 200-day SMA at $40.75 since March 4 until the stock reclaimed it at $38.56 on July 30. The year-to-date low in-between was $33.34 set on May 7.
Analysts expect the company to report earnings of 40 cents per share after the closing bell on Wednesday. NetApp has a 12-month trailing P/E ratio of 17.7 and dividend yield at 1.7%.
The weekly chart is positive but overbought with its five-week MMA at $37.89. The 200-week SMA at $40.21 is a technical resistance. Monthly and annual value levels are $35.99 and $34.20, respectively, with a weekly pivot at $39.21 and quarterly and semiannual risky levels at $41.48 and $42.35, respectively.
NetEase ($83.48) has been above its 200-day SMA of $72.77 since June 9, and it set an all-time intraday high at $86.75 on July 29.
Analysts expect the company to report earnings of $1.42 per share after the closing bell on Wednesday. Netease has a 12-month trailing P/E ratio of 14.5 and dividend yield at 2.1%.
The weekly chart is positive but overbought with its five-week MMA at $80.34. Semiannual and monthly value levels are $80.87 and $77.73, respectively, with a weekly risky level at $88.55.
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 CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) 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 attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. 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 currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.19 is very high and demonstrates very strong liquidity.
- CISCO SYSTEMS INC's earnings per share declined by 8.7% 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, CISCO SYSTEMS INC increased its bottom line by earning $1.86 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $1.86).
- Net operating cash flow has slightly increased to $3,198.00 million or 3.36% when compared to the same quarter last year. Despite an increase in cash flow, CISCO SYSTEMS INC's cash flow growth rate is still lower than the industry average growth rate of 14.40%.
- The gross profit margin for CISCO SYSTEMS INC is rather high; currently it is at 65.34%. Regardless of CSCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 18.94% trails the industry average.
- You can view the full analysis from the report here: CSCO Ratings Report