NEW YORK (TheStreet) -- Here are some technical trading guidelines for six companies that will report their quarterly results this week.
The biggest winner year-to-date is Big Lots (BIG) with a gain of 46%. The retailer of closeout merchandise and toys set a multiyear high last week after setting a multiyear low in January. That came after the company reported earnings in December that missed estimates. Investors will learn pre-market on Friday whether Big Lots' turnaround can continue.
In second place in the winners' circle is Abercrombie & Fitch (ANF) with a gain of 33% year to date. The clothing retailer, which will report pre-market Thursday, has been volatile.
In third place is luxury-goods retailer Tiffany (TIF) , which is up 8.4% year to date. High-end retailers have performed well this year, and Tiffany set an all-time high in July. The company will report pre-market on Wednesday.
The biggest year-to-date loser is RadioShack (RSH) , which is down 74% year to date. The stock has become a penny stock, trading at less than dollar a share. Investors will get clues pre-market on Tuesday whether the electronics retailer has a chance for a turnaround.
Best Buy (BBY) was a turnaround story in 2013, but the stock is down 22% so far this year. The big-box retailer set a multiyear low in December 2012, and hit a multiyear high in November 2013, up almost 300%. Best Buy will report pre-market on Tuesday.
Smith & Wesson (SWHC) has beaten analysts' earnings-per-share estimates every quarter since the end of 2011. The stock set a multiyear high in June, but it is down 3.8% year to date. The company will report after the close on Tuesday.
Here are today's stock profiles. Two "crunching the numbers" tables follow.
Abercrombie ($43.80) is above four of five moving averages in today's first "crunching the numbers" table. The exception is its 200-week simple moving at $47.23, which is a sign that the retailer's turnaround is still incomplete.
Analysts expect the company to report earnings-per-share of 10 cents. Abercrombie has a 12-month trailing price-to-earnings ratio of 24.5 and dividend yield of 1.8%.
The weekly chart is positive with its five-week modified moving average at $40.99. Monthly and weekly value levels are $41.32 and $39.42, respectively, with quarterly and annual risky levels at $46.10 and $53.33, respectively.
Best Buy ($31.20) has been below its 200-day simple moving average since Jan. 16 until last week with the average at $30.44. The 2014 intraday low was $22.15 on Jan.31.
Analysts expect the company to report earnings of 31 cents per share. It has a 12-month trailing P/E ratio of 15.2 and dividend yield of 2.4%.
The weekly chart is neutral with its five-week MMA at $29.85 and its 200-week SMA at $27.02. Weekly and annual value levels are $29.74 and $27.51, respectively, with an annual pivot at $30.62 and quarterly risky level at $33.03.
Big Lots ($47.25) traded as low as $25.50 on Feb. 5, and popped above its 200-day SMA at $33.72 on March 7. It set a multiyear intraday high at $47.76 on Aug. 19 with the 200-day SMA at $37.38.
Analysts expect the company to report earnings of 30 cents per share. Big Lots has a 12-month trailing P/E ratio of 23.3 and dividend yield of 1.4%.
The weekly chart is positive but overbought with its five-week MMA at $45.05 and its 200-week SMA at $35.98. Weekly and annual value levels are $44.58 and $42.13, respectively, with no risky levels.
RadioShack ($0.68), which peaked above $75 during the 1999 tech bubble, has been trading below a dollar a share since July 3. Analysts expect the company to report a loss of 59 cents per share.
The weekly chart is negative but oversold with its five-week MMA at $0.79 with its 200-week SMA at $6.79. I do not have value or risky levels for stocks trading under a buck.
Smith & Wesson ($12.98) set a multiyear intraday high at $17.28 on June 11, and broke below its 200-day SMA at $13.75 on July 29. It traded as low as $12.13 on Aug. 1.
Analysts expect the company to report earnings of 25 cents per share. Smith & Wesson has a 12-month trailing P/E ratio of 9.8 but does not pay a dividend.
The weekly chart is negative but oversold with its five-week MMA at $13.42. Semiannual and annual value levels are $12.03 and $10.86, respectively, with semiannual and monthly risky levels at $14.93 and $16.13, respectively.
Tiffany ($100.54) traded as low as $80.38 on Feb. 3, staying just above its 200-day SMA at $80.25. The stock set an all-time intraday high at $103.38 on July 3.
Analysts expect the company to report earnings of 86 cents per share. Tiffany has a 12-month trailing P/E ratio of 25.0 and dividend yield of 1.5%.
The weekly chart shifts to negative given a close on Friday below its five-week MMA at $98.64. Monthly and semiannual value levels are $97.54 and $94.65, respectively, with quarterly and semiannual risky levels at $107.04 and $113.49, 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.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
TheStreet Ratings team rates TIFFANY & CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIFFANY & CO (TIF) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 13.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for TIFFANY & CO is rather high; currently it is at 63.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.41% is above that of the industry average.
- Net operating cash flow has significantly increased by 3255.93% to $76.62 million when compared to the same quarter last year. In addition, TIFFANY & CO has also vastly surpassed the industry average cash flow growth rate of 25.53%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 50.3% when compared to the same quarter one year prior, rising from $83.58 million to $125.61 million.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: TIF Ratings Report