There are opportunities to buy companies around earnings reports
Portfolio managers are looking ahead to earnings season and seeing opportunities to buy more of their favorite stocks, either at a discount or at a profit. Caterpillar is one such stock. The construction equipment maker reported adjusted earnings per share of $4.27, excluding the unfavorable foreign currency impact of $0.41 per share. Analysts polled by Refinitiv were expecting $4.02 per share. Revenue of $16.6 billion was slightly higher than the $16.04 billion expected by analysts. Shares fell more than 3%. CAT 5D line cat According to Stephanie Link, Hightower’s chief investment strategist and portfolio manager, who saw more positives than negatives in the report, this is an opportunity to buy more. “I thought those numbers were pretty good,” Link said in CNBC’s “Halftime Report.” She said she’s been adding to the stock, calling China’s reopening a tailwind for Caterpillar next year. For Sarat Sethi, managing partner and portfolio manager at Douglas C. Lane & Associates, the gains have also given a boost to one of his favorites, General Motors. The stock is up nearly 8% on a solid earnings hit and strong 2023 guidance. GM 5D line gm “That was kind of a perfect results report that we’ve been hoping for for a long time,” Sethi said. He added that the end of the year “is going to be a really good time to own the stock.” Josh Brown’s pick of the day is water heater maker AO Smith, which FactSet says he would not sell after reporting a drop in earnings. The stock gained more than 12%. AOS 5D Berg aos “This is a Dividend Aristocrat,” said Brown, CEO of Ritholtz Wealth Management. “They’ve increased their dividend every year for the past 30 years. There are very few public companies in this thin air.”
https://www.cnbc.com/2023/01/31/there-are-opportunities-to-snap-up-companies-around-earnings-reports.html There are opportunities to buy companies around earnings reports
