This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

[video] Quick Take: Boeing Hits, Caterpillar Misses

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.

Boeing (BA) 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.

Caterpillar (CAT), 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.

AT&T (T) 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 Precision Castparts (PCP), which hasn't appreciated as much as Boeing this year.

-- Written by Bret Kenwell in Petoskey, Mich.

Stock quotes in this article: BA, PCP, CAT, T 
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs