Oracle Headlines Earnings this Week
Last week we received two conflicting consumer related economic releases, one a positive for the labor market, the other a negative on consumer sentiment. Both charts shown are courtesy of "dshort - Advisor Perspectives."
On the labor front, we now have a positive trend for weekly initial jobless claims, where the four-week moving average has declined below the recessionary 350,000 threshold, to 346,750.
If this trend continues the unemployment rate should begin to fall towards the 6.5% FOMC target, where QE3 and QE4 may begin to end. We will learn more about this from the FOMC this afternoon.
Last Friday, we learned that the University of Michigan Consumer Sentiment Index fell to 71.8 in March, the lowest level in more than a year. It has been well below the neutral zone of 90 to 110 since the recession began at the end of 2007.
Looking at today's valuations, the computer and technology sector is 15.1% overvalued, the construction sector is 22.6% overvalued and the retail-wholesale sector is 16.3% overvalued.
Reading the Table
OV / UN Valued : The 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 twelve 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 twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.
Value Level : The price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level : is the price at which to enter a GTC Limit Order to sell on strength.
Reporting after the close on Wednesday:
Jabil Circuit (JBL) ($19.18) -- The Tampa Bay electronic products solutions company reports their Q2 2013 results and is expected to earn 64 cents a share. The stock has a buy rating and is trading below its 200-day simple moving average (SMA) at $19.58 with its 200-week SMA a major support at $17.48. My monthly value level is $18.60 with a quarterly pivot at $20.09 and semiannual risky level at $28.13.