Little Margin of Safety Going into Tuesday

11 stocks reporting earnings Tuesday have a negative margin of safety.

The Dow, S&P 500 and Nasdaq all closed higher Monday. Gains have extended from last week where we saw all three indices achieve record highs on Thursday - the first time this has happened since December 1999, according to CNBC.

It may be foolish to suggest stocks are running out of steam as they reach new highs, but data shows negative margin of safety for 11 of 16 companies expected to report earnings Tuesday.

Click on fair value estimate for more detail.
‘CREE‘COTY‘AAP‘BHP‘HD‘PLKI‘HTHT‘TJX‘JKHY‘GK‘EC's pre-built valuation models make it easy to figure out a stock's fair value (as shown above). Once you've figured out the fair value, you can then calculate the margin of safety:

Margin of Safety = Fair Value / Stock Price - 1

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Article written by Matt Hogan.

Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article.