Companies are in the midst of releasing Q1 earnings reports, which give insight into their performance over the last quarter and offer a glimpse into future profitability. For long-term investors like Fort Pitt Capital Group, determining the potential success of a stock over time is essential.
This week I offered my reaction to earnings to a Wall Street Journal article and also weighed-in on a specific company’s report for a Bloomberg.com piece.
In the WSJ article, “U.S. Stocks Post Modest Gains,” reporter Dan Strumpf addresses how corporate earnings reports have had a positive effect on US stocks. I contribute how I, and Fort Pitt, are digging deeper into the earnings reports from this quarter to understand which companies have strong financials and show significant growth potential. “The bar’s been lowered enough where just about everybody can step right over it now,” I explain. “Our theme for this year is trying to tease out where real growth is.” This is especially true of our investments in companies in the aerospace and semiconductor sectors.
“GE’s Immelt Pursuing Biggest Deal in Bid to Boost Growth,” an article written by Richard Clough and Brooke Sutherland, discusses at length the growth initiatives of GE in relation to their earnings, as they make critical and strategic moves in today’s market. I have long been a fan of GE CEO Jeffrey Immelt and his business style during and after the financial crisis. “He really buckled down,” I offer. “His willingness to really concentrate the investment in the energy segment has served the company well.”