Earnings, Tariffs and Video Games in the Blitz

  • The "Halftime Report" traders give their take on Health care, telecom, and video game stocks.
  • Steve Weiss believes Allergan is worth $230 per share.
  • Sarat Sethi is bearish on AT&T despite Bank of America's upgrade.

In the midst of earnings season and trade war tensions, the "Halftime Report" traders weighed in on some of Monday's biggest movers.

Last week, Allergan reported second-quarter earnings of $4.42 per share, beating Wall Street estimates by almost thirty cents, and also increased its dividend. Shares of the pharmaceutical company have risen nearly four percent since that report, and Short Hills Capital Partners' Steve Weiss believes there is still more room to run.

"There are rumors of more activists coming in, and right now you've got Appaloosa [Management]…" Weiss said on Monday's "Halftime Report." "[Allergan] is worth about $230."

Bank of America upgraded telecommunications giant AT&T due to cash and earnings growth potential resulting from the merger with Time Warner. Sarat Sethi of Douglas C. Lane, however, thinks that the stock has been "washed out" after all of the deal uncertainty has been taken away.

"[AT&T] is a play on how much… expenses can they cut out of Time Warner," Sethi argued. "I'm not a big fan of this. I think there's not that much upside. It's just mainly cost-cutting."

Tyson Foods shares hit a one-year low in Monday trade after it announced a cut in profit outlook, with the food company noting changing global trade policies and a volatile commodities market as future headwinds. Virtus Investment Partners' Joe Terranova sees more potential for trouble ahead.

"I wouldn't buy the stock here," Terranova said. "They're basically telling you that uncertainty is going to persist surrounding their business model and in lieu of… [the] President backing away from these tariffs, this is going to struggle."

With the Nasdaq starting the week with its biggest three-session drop in nearly four months, video game stocks such as Take-Two Interactive and Electronic Arts came under pressure. Despite hitting respective one-month and two-month lows, HPM Partners' Jim Lebenthal still sees value in the group.

"I think this is a temporary blip. It could be Fortnite Battle Royale is eating into some of these companies' profits but these are attractively priced and the demographics certainly support continued electronic gaming revenue growth so I like this."