8 previews: Will Cisco befriend investors?
The computer networking company is the headliner as earnings season continues with noteworthy gold, tech, industrials, construction and retail stocks.
Today, I profile eight stocks that report their Q4 quarterly earnings this week, including Dow Jones Industrial Average ($INDU) component Cisco Systems (CSCO), which in my opinion is this week's headliner, and I hope that "Cisco kid is a friend of mine" as the stock is a member of my ValuTrader Model Portfolio.
Stocks remain overvalued according to www.ValuEngine.com, with 62.4% of all stocks overvalued. The basic materials sector, which includes the gold stock, is the cheapest sector at 0.7% overvalued. The industrial products sector is overvalued by 19.9%. The construction sector is 21.7% overvalued. The consumer staples sector remains the most overvalued by 22.0%. And, the retail-wholesale sector is 10.8% overvalued.
Like the fundamentals the technicals are also getting stretched toward risky levels. The Dow Transportation Average tested my annual risky level at 2925 on Monday with my semiannual risky level looming at 5955. The Russell 2000 traded around my monthly pivot at 911.32.
The other major averages lag their risky levels. Weekly, monthly and semiannual risky levels are: 14,108; 14,132; and 14,323 Dow Industrials; and 1544.0; 1542.9; and 1566.9 S&P 500 ($INX). Monthly and weekly risky levels are 3250 and 3264 and 3583 Nasdaq ($COMPX), and 948.81 and 965.51 Russell 2000.
The downside during the first quarter is to my quarterly pivots at 13,668 Dow Industrials, 1431.1 S&P 500 and 3071 NASDAQ. Other downside targets are my annual pivot at 5469 on Dow Transports, and my annual pivot at 860.25 on the Russell 2000. Sometime during the year the downside is to my annual value levels at 12,696 Dow Industrials, 1348.3 S&P 500, 2806 NASDAQ and 809.54 Russell 2000.

Reporting after the close on Tuesday, NETGEAR (NTGR) ($36.98) is expected to earn 50 cents per share. NTGR has a hold rating and set a multi-year high at $45.31 in July 2011. NTGR was sent to the woodshed declining from $40.97 on Jan. 28 to $35.00 on Jan. 29. The weekly chart profile is negative with the five-week modified moving average (MMA) at $37.78. My monthly value level is $32.64 with a quarterly risky level at $38.62.
Reporting before the open on Wednesday, Deere (DE) ($93.23) is expected to earn $1.41 per share. Deere has a buy rating and is below its multi-year high at $99.80 in April 2011. The weekly chart is overbought with the five-week MMA at $90.36. My quarterly value level is $81.03 with a monthly risky level at $94.86.
Reporting after the close on Wednesday, Cisco Systems ($21.27) is expected to earn 43 cents per share. CSCO has a buy rating and traded to a new 52-week high at $21.34 on Monday, Feb. 11. The weekly chart is overbought with its five-week MMA at $20.44. My annual value level is $17.77 with a monthly pivot at $21.03 and annual risky level at $22.76.
Also reporting after the close on Wednesday, NVIDIA (NVDA) ($12.51) is expected to earn $0.23 per share. NVDA has a hold rating and is trading above its Nov. 16 low at $11.15. The weekly chart is neutral with the five-week MMA at $12.36. My weekly value level is $12.19 with a quarterly risky level at $13.01.
Reporting after the close on Wednesday, Whole Foods Market (WFM) ($95.92) is expected to earn 77 cents per share. WFM has a buy rating and set a multi-year high at $101.86 on Oct. 5, 2012. The weekly chart profile is positive with the five-week MMA at $93.11. I do not show a value level with a weekly pivot at $96.32 and monthly risky level at $100.96.
Reporting before the open on Thursday, Barrick Gold (ABX) ($32.30) is expected to earn $1.14 per share. ABX has a buy rating and is just above its July 26, 2012 low at $31. The weekly chart is oversold with the five-week MMA at $33.60, and the 200-week SMA at $42.44. My quarterly value level is $31.69 with a monthly pivot at $33.08 and semiannual risky level at $37.04.
Also reporting before the open on Thursday, Molson Coors (TAP) ($44.05) is expected to earn 64 cents per share. TAP has a buy rating and is below its Sept. 14, 2012 high at $46.35. The weekly chart is positive with the five-week MMA at $43.99. My semiannual value level is $38.97 with a weekly pivot at $44.88 and monthly risky level at $48.50.
Reporting before the open on Thursday, Vulcan Materials Co (VMC) ($55.65) is expected to lose 10 cents per share. VMC has a buy rating and is below its May 2010 high at $59.90. The weekly chart is overbought with the five-week MMA at $54.59. My quarterly value level lags at $41.17 with a weekly pivot at $58.36 and monthly risky level at $60.61.
At the time of publication the author had no position in any of the stocks mentioned.
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By Richard Suttmeier 