Act Two of This Week's Retail Earnings

Tickers in this article: BBY DECK GPS JCP KSS MNST PETM

JC Penney (HD) ($21.51) is expected to report a loss of 16 cents per share. The stock has a hold rating and set a multi-year low at $15.69 on Nov. 16 with the 200-day SMA at $22.71. JC Penney is 25.6% overvalued and declined 48.2% over the past 12 months. The weekly chart profile remains positive with a close this week above the five-week modified moving average (MMA) at $20.44. My semiannual value level is $17.38 with a weekly pivot at $21.25 and a quarterly risky level at $24.32.

PetsMart (PETM) ($62.61) is expected to earn $1.21 per share. The stock has a buy rating and set its multi-year high at $72.75 back on Sept. 10, 2012. PetsMart is 13.5% undervalued, has gained 15.4% over the past 12 months, and has a slightly elevated 12-month trailing EPS at 17.8. The weekly chart profile stays negative on a close this week below the five-week MMA at $65.78. My annual value level is $46.91 with a semiannual pivot at $62.22 and weekly risky level at $65.87.

Monster Beverages (MNST) ($49.64) is expected to earn 41 cents per share. This consumer staples stock has a buy rating and set a multi-year low high at $39.99 on Nov. 8, 2012. Monster is 12.9% undervalued, is down 12% over the past 12 months and has an elevated 12-month trailing EPS at 26.0. The weekly chart profile stays shifts to negative from neutral on a close this week below the five-week MMA at $49.61. My monthly value level is $37.61 with a weekly pivot at $46.85 and semiannual risky level at $53.96.

Reporting before the open on Thursday:

Best Buy (BBY) ($17) is expected to earn $1.56 per share. The stock has a buy rating and set a multi-year low at $11.20 on Dec. 27, 2012. Best Buy is 19.2% undervalued and is down 29.3% over the past 12 months with a single-digit 12-month trailing P/E ratio at 5.2. The weekly chart profile stays positive on a close this week above its five-week MMA at $15.72. My monthly value level is $13.88 with a semiannual pivot at $17.47 and weekly risky level at $19.66.

Kohl's (KSS) ($45.51) is expected to earn $1.63 per share. The stock has a buy rating and recently failed at its 200-day SMA at 48.18. Kohl's is 10.9% undervalued, is down 5.4% over the past 12 months and has a reasonable 12-month trailing P/E ratio at 11.0. The weekly chart profile stays positive given a close this week above the five-week MMA at $45.55. My quarterly value level is $42.15 with a weekly pivot at $47.51 and an annual risky level at $49.19.

Reporting after the close on Thursday:

Deckers Outdoor (DECK) ($40.70) is expected to earn $2.58 per share. This consumer discretionary stock has a hold rating and set a multi-year low at $28.53 on Oct. 31, 2012. Deckers Outdoor is 13.3% undervalued, has declined 47.6% over the past 12 months and has a reasonable 12-month trailing P/E ratio at 12.0. The weekly chart profile shifts to negative with a close this week below the five-week MMA at $40.33. My monthly value level is $32.25 with a weekly pivot at $42.75 and quarterly risky level at $46.32.

Gap (GPS) ($31.22) is expected to earn 71 cents per share. The stock has a buy rating and set a multi-year high at $37.85 back on Oct. 5, 2012. The Gap is 1.6% undervalued, has gained 40.7% over the past 12 months and has a reasonable 12-month trailing P/E ratio at 13.7. The weekly chart profile shifts to negative with a close this week below the five-week MMA at $32.28. My quarterly value level is $28.28 with a semiannual pivot at $32.17 and weekly risky level at $34.53.