NEW YORK (TheStreet) -- With earnings season in full swing, investors are unsure of what to make of the markets' volatility. The broader indexes have been on a roller-coaster ride with huge swings in both directions.
Tuesday, the Dow Jones industrial average closed at 16,243 after rebounding from a session low of 16,063. The Dow's low point occurred despite positive earnings results from anchors like Johnson & Johnson (JNJ) and Coca-Cola (KO).
It is clear that investors have a hard time making up their minds on the earnings metrics that matter the most. One thing is certain; growth will never get overrated. And better-than-expected results from the following three companies will help set the tone for what is to come.
Let's begin with Google (GOOG), which will report first-quarter earnings Wednesday after the close. The search giant made several headlines Tuesday. In addition to making its popular Google Glass available to the public at a price of $1,500 (for one day only), Google announced its acquisition of Titan Aerospace.
Recall, Titan Aerospace, which makes drones and robots that fly, was also pursued by Facebook (FB). (Details of the deal weren't disclosed.) Google continues to demonstrate why, in every sense of the word, it is a true technology giant. Wednesday, analysts will be more interested in its earnings results, specifically, how its recent deals factor into the company's bottom line.The Street will be looking for $6.40 in earnings per share on revenue of of $12.64 billion. In the January quarter, Google posted a 17% year-over-year jump in consolidated revenues to $16.86 billion. Even more impressive, when extracting out its position in Motorola, Google's revenue for its core business surged 22% to $15.70 billion. So growth is not going to be an issue this quarter. Investors will be more interested in new developments with its mobile and PC search ad divisions. In addition to display ads for YouTube, mobile and PC search ads are key growth areas that will drive revenue and earnings over the next couple of years as Google battles Facebook for love from advertisers. For now, Google is one of those companies that should be rated buy at any level. The company makes tons on money and Google remains one of only of a handful of companies that can support both its valuation (P/E of 28) and growth expectations, regardless of what the market does. At a split-adjusted price of $536, there's 15% worth of upside to these shares in 2014.
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