9 Previews: Jungle of Earnings Includes Amazon
The most important earnings report is Amazon (AMZN) , an obvious momentum stock with a growth story. Amazon traded to a new all-time high at $284.72 last Friday, Jan 25.
Stocks are approaching dangerous overvalued readings according to www.ValuEngine.com. This morning we show that 62.4% of all stocks are overvalued, and as I explained on Jan. 25 in Market Hasn't Peaked a reading of 65% and higher is a warning for the stock market. Only 37.6% are undervalued and only 14.7% of these are undervalued by 20% or more. This reflects limited additional upside for the stock market.
ValuEngine also shows that all 16 sectors are overvalued, nine by double-digit percentages. The seven sectors represented by the stocks profiled here are overvalued: aerospace by 6.8%, computer & technology by 15.7%, consumer discretionary by 9.2%, medical by 16.0%, oils-energy by 6.5%, retail-wholesale by 15.8% and transportation by 24.9%.
Reporting before the open on Tuesday Pfizer (PFE) ($26.84) is expected to earn 44 cents per share. PFE has a buy rating and set a new multi-year high at $27.30 on Jan. 24. The daily chart shows a negative divergence in momentum and the weekly chart is positive with the five-week modified moving average at $25.91. The stock has a buy rating and is 30.4% overvalued with a monthly value level at $25.47 and a quarterly pivot at $27.13.