Retailers Don't Miss a Beat on Earnings

Tickers in this article: ANF DDS DLTR HD IYC JWN M PCLN SKS TGT TJX WMT
NEW YORK ( TheStreet) -- I began to profile the earnings from selected retailers back on Feb. 19 in 11 Stocks Reporting Earnings this Week, where four are stocks in the retail-wholesale sector.

This week, I continued this coverage with Retailers Headline This Week's Earnings, where all seven stocks are in the retail-wholesale sector.

Overall 10 of the 11 stocks beat their EPS estimates, which is quite surprising considering the continued weak readings for consumer sentiment.

At www.ValuEngine.com, we show that 60.0% of all stocks are overvalued, with 15 of 16 sectors overvalued, nine by double-digit percentages, including the retail-wholesale sector.


A benchmark ETF that includes many of the retailers profiled today is the iShares DJ US Consumer Services Sector Index Fund (IYC) ($93.04), which remains below its multi-year high at $93.85, set on Feb. 13, 2013.

The 21-day and 50-day simple moving averages (SMA) are $92.62 and $90.55 respectively, with my semiannual risky level at $95.48.

Chart Courtesy of Thomson / Reuters



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.

Twelve month trailing P/E ratios .

Here are my updated "buy and trade" parameters and my earnings scorecard:

Abercrombie & Fitch (ANF) ($46.40) beat EPS estimates by 28 cents earning $2.21 per share on Feb. 22, but the stock traded down to $44.35 on Feb. 26, below its February value level at $46.97. ANF still has a buy rating with a negative weekly chart profile with the five-week MMA at $48.00. The 200-week SMA held at $45.04. My quarterly value level is $42.29 with weekly risky level at $52.51.

Dillards (DDS) ($79.01) missed earnings estimates by three cents, earning an EPS of $2.87 on Feb. 25. The stock gapped below my quarterly value level, now a risky level at $83.66. Weakness held its 200-day SMA at $75.82. DDS still has a buy rating and the weekly chart shifts to negative with a close on Friday below the five-week modified moving average (MMA) at $83.53. My semiannual value level lags at $62.99.