NEW YORK ( TheStreet) -- TheStreet's Brittany Umar and Stephanie Link, co-manager of the Action Alerts PLUS portfolio, discussed what to make of some big companies' earnings reports.
(BA - Get Report)
beat on the top and bottom lines while raising its free-cash flow guidance. Link said the company was at the forefront of a "super-cycle" in the aerospace industry and had an incredibly strong management team.
She also said the higher-than-expected free-cash flow is very important, because Boeing has been spending so much money to build out its new jets. It also means the dividend could increase in the future or the company could buyback more shares.
(CAT - Get Report)
, reported another dismal quarter. Link suggested investors do not have confidence in the company's earnings, which have been lowered for four straight quarters. The limited foresight in mining and the yet-to-rebound construction market make it hard to believe things will improve for CAT in the near term.
She added the stock may not be as cheap as it seems, despite trading below its 20-year average on a price-to-earnings ratio basis.
reports Thursday. Link said she would be watching for three things: its wireless business, subscriptions and margins.
She concluded that high-yield stocks have been oversold and she would be a buyer of AT&T on weakness. As for Caterpillar, Link said to wait for the stock to bottom before stepping in, which may be in the low $80s, and to wait for a 5% pullback in Boeing.
She also likes aerospace supplier
, which hasn't appreciated as much as Boeing this year.
-- Written by Bret Kenwell in Petoskey, Mich.