Wal-Mart, Target, Home Depot Report Earnings This Week
On Thursday the two major big box retailers of just about everything report their quarterly results. Also on Thursday are two discount retailers, one who features goods and products that cost a dollar, the other sells discount clothing.
Market technicals continued to deteriorate last week on the back of significant market declines on the two days following Election Day. The majority of retail-related ETFs, consumer discretionary stocks, consumer staples stocks, and retail-wholesale stocks have negative weekly chart profiles. In fact seven of the eight retail stocks I profile today have negative weekly chart profile, and the eighth is overbought.
At www.ValuEngine.com we show that 12 of 16 sectors are overvalued, led by construction overvalued by 12.0% and consumer staples overvalued by 11.4%. That stated all eight of the stocks I am profiling today have buy ratings according to ValuEngine and six are undervalued.
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.
Dicks Sporting Goods (DKS) ($49.35): Reports earnings premarket Tuesday. The stock has a buy rating according to ValuEngine with an elevated price-to-earnings ratio. The stock is above its 200-day simple moving average at $48.54. The stock set a multi-year high at $54.24 on Sept. 18. The weekly chart is negative with the five-week modified moving average at $50.60 and the 200-week SMA at $32.63. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.