This Day On The Street
Continue to site
ADVERTISEMENT
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

[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 - 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.

Caterpillar (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.

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.

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BA $142.91 -0.77%
CAT $87.00 -0.34%
AAPL $125.80 -2.25%
FB $77.56 -1.59%
GOOG $530.80 -1.85%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs