Seven Stocks Go to the Woodshed While Apple Fills Gap
Meanwhile, Apple (AAPL) , which has been taken to the woodshed several times since September's all-time high at $705.07. Apple bottomed at $435.00 on Jan. 25 and emerged from behind the woodshed to a high of $484.94 on Feb. 11, filling the gap to the Jan.15 low at $483.38. Many market technicians say that when a stock experiences a price gap up or down that those gaps are almost always filled once a stock tops, or sets a tradable bottom.
Apple ($467.90) still has a buy rating, is 19.4% undervalued with a trailing 12 months price-to-earnings ratio at 10.7. The weekly chart profile remains extremely oversold with the five-week modified moving average at $489.81. My annual value level remains $421.05 with a semiannual pivot at $470.21, which was tested again on Tuesday, and annual risky level at $510.64.
At www.ValuEngine.com we show that 63.9% of all stocks are overvalued versus the 65.0% valuation warning threshold. Eleven of 16 sectors are overvalued by double-digit percentages including four of the five sectors represented in the stocks profiled today; computer and technology is overvalued by 14.0%, construction is overvalued by 23.8%, consumer discretionary by 9.5%, medical by 14.1%, and retail-wholesale by 11.5%.
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.
Value Level: 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: Price at which to enter a GTC limit order to sell on strength.
Here's My Buy and Trade Strategies for today's Woodshed Stocks:
Akamai Technologies (AKAM) ($36.74) declined from $41.58 at the close on Feb. 6 to a low of $33.55 on Feb. 7 after offering weaker than expected first quarter guidance. The stock is rated a hold with a negative weekly chart profile, but weakness was above its 200-week simple moving average at $33.37 with its five-week MMA at $38.71. My semiannual value level is $28.24 with a weekly risky level at $40.14.