Book Profits Now on These 9 Sell-Rated Stocks

Tickers in this article: DD F LSTR NSC ODFL R TSLA UPS USG
NEW YORK (TheStreet) -- Among the waves of stocks that report quarterly results next week, the nine I am profiling today are rated sell according to ValuEngine. Investors should consider booking profits on these stocks pre-earnings.

The stock market has clearly become a momentum game fueled by the notion that shares will continue to move higher as long as Fed Chief Bernanke continues QE3 and QE4. In a momentum market stock specific fundamentals tend to be ignored. Buying weakness has been the chosen strategy even following an earnings miss or weaker than expected guidance. I guess the bet is that QE3 and QE4 will cure the ills of even the sell rated companies.

I say that buyers should be beware as 75.3% of all stocks are overvalued, 42.2% by 20% or more including four on today's list. Eight of nine stocks are overvalued. All have sell ratings and all are trading higher than they did 12 months ago. Four have gained more than 58.9% with one up by more than 250%. All are projected to be lower 12 months ago. Seven of nine are above their 200-day simple moving averages.

My suggested allocation to the stock market is to have a maximum of 50% of your stock investment dollars in the market. If you have not taken gains in this environment, and own any of the stocks in today's list consider reducing your positions before these companies report earnings between July 23 and July 25.

Reading the Table

OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.