With earnings season in full swing the market is throwing up all sorts of profitable opportunities. Here’s a look at some of the day’s hot stocks.
NXP Semiconductors NV (NXPI)
First on today’s bill is techno-electronics company NXP Semiconductors NV. The company has had a good year so far, with a number of analyst upgrades and a spree of both rumoured and completed acquisitions seeing its stock rise more than 30% since the beginning of January.
Earnings were released before the US bell on Thursday, beating expectations in all the major areas of focus. The company reported EPS of $1.17 versus a consensus forecast of $0.91. Similarly, revenues rose 14.8% year over year to reach $1.25B, beating expectations of $1.23B.
The stock closed down 0.16% yesterday at 60.52, and is trading pre-bell at 62.95, a 4.02% gain. Look for further strength as the day matures, with an initial upside target at 63.50. Beyond that, look for 64.75 as a secondary goal.
Caterpillar Inc. (CAT)
Next up is construction and mining equipment manufacturer and retailer Caterpillar Inc. This morning, the company reported its first quarter 2014 earnings, smashing expectations across the board. The company posted a first-quarter net profit of $922M, or $1.61 a share, compared with $880M, or $1.32 a share, during the comparable quarter last year. Revenues were reported at $13.24B. Consensus forecast the figures at a a profit of $1.24 a share on sales of $13.15B.
As with NXP, Caterpillar stock closed down yesterday, but is trading at 107.25 before the US open, a 3.74% premarket gain. Expect the gains to continue as the day matures, with an initial upside target of April 2012 highs at 109.21. Beyond that, look to March highs of the same year just shy of 113.00 as a secondary goal.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com