The Four Stocks You Need to Watch While Earnings Season Is Underway

0 | By Wall Street Insights and Indictments Staff

Shah made an appearance on Fox Business Network’s Varney & Co. at the ring of the opening bell on Wednesday, and host Stuart Varney asks him about four key stocks that breaking through every headline right now…

Key Takeaways:

  1. The first two are Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Both report earnings in two weeks, but since both companies are “priced to perfection” already, can’t we expect a pullback if their numbers aren’t stellar? Well, they aren’t exactly priced to perfection. They’re priced in terms of increasing earnings. Would they take a hit, Apple and Microsoft, if they fall way short of expectations? Yes, but he doubts they will. If they fall somewhat short of expectations, the stocks could come off a little bit, then it will be a function of the rest of the market. Again, if the market starts to move back up, everybody wants to be in these stocks, they’re winners, they’ll continue to grow their earnings, grow their profitability, grow their cash, etc. So again, investors will go right back into them.
  1. Next comes Target Corp. (TGT). The retailer posted disappointing holiday sales and is now down 7.5% – to $118. Should investors even think about buying at that level? Now, Shah would consider it… but he actually wants it lower, to around $110 a share, in which case he’s a “buyer all day.” If other big-box retailers see some faltering earnings, the sector could come down a little bit more. Frankly, you can hardly bet against the stock in terms of ones he’d like to buy, but he’d love to see it go down to $110…where you could consider loading up on it.
  1. And, finally, Shah and Varney get into one of the largest, yet most hated, stocks on Wall Street: Boeing Co. (BA). Surrounding all the negative news, is it still a buy? In short, that depends on your situation. Shah wouldn’t like to see the stock come down because he doesn’t know that all the bad news is out. But if you’re a long-term owner of the stock, if you own it especially at lower-levels, there’s nothing to do. This is a long-term haul, it’s got nowhere to go but up from here. For him, it’s just the question as a trader of what level he gets in at. You might be in the same situation. But if you bought it already, good for you. Add more if it goes lower.


The Wall Street Insights & Indictments Research Team

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