Portfolio managers are looking at earnings season and seeing opportunities to buy up more of their favorite stocks either at a discount or as they gain. Caterpillar is one such stock. The construction equipment manufacturer reported adjusted earnings per share of $4.27, excluding an unfavorable foreign currency impact of $0.41 per share. Analysts surveyed by Refinitiv expected $4.02 per share. Revenue of $16.6 billion was slightly higher than the $16.04 billion analysts anticipated. Shares slipped more than 3%. CAT 5D line cat That’s an opportunity to buy more, according to Stephanie Link, chief investment strategist and portfolio manager at Hightower, who saw more positives than negatives in the report. “I thought those numbers were pretty good,” Link said on CNBC’s ” Halftime Report .” She said she added to the stock, noting China’s reopening as a tailwind for Caterpillar in the next year. For Sarat Sethi, managing partner and portfolio manager at Douglas C. Lane & Associates, earnings has also given one of his picks, General Motors , a boost. The stock is up nearly 8% on a solid earnings beat and strong guidance for 2023. GM 5D line gm “This was kind of a perfect earnings 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 manufacturer A. O. Smith , which he said he would not sell after it reported an earnings beat, according to FactSet. The stock gained more than 12%. AOS 5D mountain aos “This is a dividend aristocrat,” said Brown, CEO of Ritholtz Wealth Management. “They have raised their dividend every year for the last 30 years. There are very few publicly traded companies in that rarefied air.”
