Men's Wearhouse will be scrutinized as its hold rated rival Joseph A Bank reports premarket on Thursday. Both clothiers are in a bidding war to buy each other with the latest bid by Mens Wearhouse. Both stocks are overvalued by 63% and traded to multi-year highs last week at $52.72 and $57.59 respectively. Mens Wearhouse set its all-time high at $56.64 in July 2007, while Joseph A Bank set its all-time high last Friday.
The eight stocks in today's table include seven from the retail-wholesale sector and one from the consumer discretionary sector. That sector is 35.7% overvalued with an equal-weight rating. Of the 394 stocks 82.2% in this sector have hold ratings.
The retail-wholesale sector is 31.6% overvalued with an overweight rating. Of the 343 stocks 78.7% in this sector have buy or strong buy ratings.
Six of the seven retail-wholesale stocks in today's table have buy ratings and the other two stocks have hold ratings. Five stocks are overvalued by 24.7% to 80.5%. One stock is down 23.1% over the last 12 months while seven have gains of 29.4% to 176.5% over the 12 months. One is below its 200-day SMA while six are above their 200-day SMAs which reflect the risk of reversion to the mean.
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.
Aeropostale ($10.32) set a multi-year low at $7.78 on Sept. 4, then a secondary higher low at $8.08 on Nov. 8 and has been above its 50-day simple moving average at $9.37 since Nov. 19. The hold rated retailer of casual apparel target to teenagers has a monthly value level at $9.88 with its 200-day SMA at $12.32.
Bob Evans Farms ($55.59) set a multi-year high at $60.22 on Sept. 24 then traded as low as $53.27 on Nov. 7. The buy rated food distributor and restaurant is well above its 200-day SMA at $48.83 with a weekly pivot at $56.57 and quarterly risky level at $59.24.
Express ($24.61) set a multi-year high at $24.87 on Tuesday. The buy-rated specialty retailer of men's and women's apparel is well above its 200-day SMA at $20.92 with a weekly pivot at $23.25 and monthly risky level at $26.75.
Isle Of Capri ($8.13) moved above its 200-day SMA at $7.45 on Nov. 21 to a high of $8.25 on Friday. The hold-rated owner of branded gaming and lodging establishments has a quarterly pivot at $8.35 with a monthly risky level at $9.31.
Krispy Kreme ($25.38) traded to a new multi-year high at $26.63 on Nov. 21. The buy rated donut maker is well above its 200-day SMA at $18.50 with a monthly pivot at $26.34 and weekly risky level at $26.60.
Mattress Firm ($37.13) has been above its 200-day SMA at $35.99 since Nov. 15 trading as high as $39.54 on Nov. 18. The buy rated maker of mattresses has a weekly value level at $35.71 with a monthly risky level at $39.38.
Men's Wearhouse ($51.12) set a multi-year high at $52.72 on Tuesday. The buy rated retailer of menswear has a monthly value level at $47.41 with a weekly risky level at $59.01.
Shoe Carnival ($28.93) traded to a new multi-year high at $29.00 on Friday. The buy rated value-oriented retailer of family footwear has a weekly value level at $27.36 with a semiannual pivot at $28.38 and semiannual risky level at $30.37.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.