At www.ValuEngine.com we show that the Consumer Discretionary sector 9.5 percent overvalued with the Hotels & Motels industry 0.1 percent undervalued and the Consumer Products Miscellaneous Discretionary Products industry 56.7 percent overvalued. All six stocks in today’s table have complete ValuEngine data and have enough price data to have most value levels, risky levels and pivots.
Central Garden & Pet Company (CENT) – has only been below $10 since January 8, 2012.
Central Garden & Pet Company (CENTA) – has only been below $10 since January 8, 2012.
Kid Brands, Inc. (KID) – has been below $10 since the week of October 29, 2010.
Morgans Hotel Group Co. (MHGC) – has been below $10 since the week of April 15, 2011.
Nutrisystem, Inc. (NTRI) – was a $74 stock in July 2007. Has only been below $10 since November 1, 2012.
Red Lion Hotels Corp. (RLH) – has been below $10 since the week of January 4, 2008.
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. The most undervalued stock is NTRI by 22.0%. The most overvalued stock is KID by 235.9%.
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. Four stocks are rated Hold and two stocks are rated Sell (KID & MHGC).
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 over the past twelve months! There were no big winners over the last twelve months¸ and the biggest loser was KID with a loss of 51.6%.
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. All six stocks are projected to be lower by 0.9% to 10.2% over the next twelve months.
P/E Ratios – The twelve month trailing P/E ratios range from 19.9 to 61.9 (NTRI).
Value Level: is 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 acts as a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Where to Buy and Where to Sell - A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A "Pivot" is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon. These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.
Buy and Trade Guidelines: Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.
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