With companies facing a slower economy, European woes and the so-called fiscal cliff, the Street has been taking down estimates across the board.
But have estimates come down enough?
With a slew of reports about to wash over the Street, the Fast Money pros reveal which companies that think could still disappoint.
Trader Simon Baker, CEO at Baker Avenue Asset Management, is skeptical of Big Blue. “I think they could be in a little trouble,” he says. “The barely got through earnings last quarter – I think they’re going to have a tough time especially with currency headwinds as strong as they are. I’d play it short into earnings.”
Trader Stephanie Link, director of research at TheStreet, says, “Dell bothers me. They have so much exposure to PC’s – about 30% of their revenue comes from PC sales (and evidence suggests PC sales are slowing.) Also, the stock isn’t cheap. I think there’s more downside.”
Trader Stephen Weiss, managing partner at Short Hills Capital, is bearish on Caterpillar because the company is tethered to global growth. “And they based their earnings outlook on an economic forecast that’s out of whack – I think they miss this quarter and lower guidance going forward.”
Trader Jon Najarian, co-founder OptionMonster.com, says that as the maker of fire engines, OshKosh is very vulnerable to cut backs. “The same is true of the defensive side of their business.”