Earnings Deluge Ahead: What’s Jim Cramer Watching?
Cramer video included in that link.
Earnings season has been underway for more than 10 days. But don't be fooled, you ain't seen nothing yet.
In the week ahead, a deluge of earnings will flood the Street during what will likely be a critical period for investors. "Therefore, let me cut to the chase," said Cramer.
Of the more than 100 expected releases , here's what the Mad Money host be watching most closely. Don't forget Monday is MLK day and the stock market is closed.
Tuesday January 22nd
Tuesday Cramer will be listening to results from Freeport-McMoRan . "This is a company that has some explaining to do," he said. "It's a copper play that should be roaring with all of the bubbly talk about China, but it's doing next to nothing because it overpaid for the assets of sister company McMoRan Energy . I want to know why and whether they destroyed value with this transaction."
Also Johnson and Johnson reports. Cramer likes this stock on a pullback. "It's got a new CEO as well as fabulous brands and there's the possibility of bringing out value with a breakup. Don't you dare sell. In fact, be a buyer if it comes down."
In addition, " Google reports after the close Tuesday," said Cramer." I think Google has enough mojo to report a decent number. I want to hear about Android monetization, and mobile search and how well the new Chrome PC is doing, because I hear it's doing pretty darned well."
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Wednesday January 23rd
Wednesday promises to be another big day for technology . "This may be the single most important quarter Apple has ever had. It comes on the heels of two so-so quarters and massive worries about weak iPhone sales ," Cramer said. "All I can tell you is that you just have to wait and see. I think it's too cheap to sell, but not compelling enough to buy until we know more."
"We also hear from Netflix on Wednesday, and this stock has been on a roll," said Cramer. The question here is whether it can continue. Cramer will be listening to see if the company has advanced plans for growth, especially overseas or if it's simply overpaying for content.
Thursday January 24th
Capital goods will come into focus on Thursday. " 3M reports in the morning, said Cramer. "Lots of people are abandoning 3M because they think the valuation is stretched at 15 times earnings. I think that's ridiculous. This company has been held back by a slowing global economy but it has continued to innovate and deliver and I think it's about to be revalued as the quintessential growth stock with healthy and rising dividends that it is."
In addition, biotech will also get Cramer's attention. "We get results from Celgene , Thursday too," said Cramer. "I think the stock will pause if only because CEO Bob Hugin just dazzled the Street, the cat's out of the bag, so to speak." However, if the stock pulled back, Cramer said he'd hit the buy button He likes it long-term.
Again, it will also be another important day for tech investors. "After the close we hear from Microsoft ," Cramer said. "I would not bet against this company down here because the expectations are very low and the cash hoard is very large. That gives Microsoft more flexibility to do something to reward long suffering shareholders than just about any other company I know."
Friday January 25th
Manufacturing grabs the spotlight on Friday. "We get Honeywell's results," said Cramer. "If this stock comes down at all next week, it is the one I want to buy ahead of the quarter because I think business is humming, particularly autos, aerospace, refining and commercial construction climate controls. What the heck? That's almost everything, hence why I want you to be in it!"
Also, consumer goods will steal focus. " Kimberly-Clark reports," said Cramer. "I think this is a case where slow and steady will win the race. And I like the dividends as well as the pro-shareholder management. This has been one of my favorite stocks throughout the turmoil and the recovery, and now I think it's just going to keep plodding along ever higher."
Lumber and housing will also come into play. " Weyerhaeuser also reports on Friday," said Cramer. " We said goodbye to this stock for the charitable trust because it had run too much into the quarter. Weyerhaeuser's the largest landowner, the largest timber company, and a huge homebuilder . It has it all, especially ahead of the hurricane Sandy rebuild, which is why it has run so much in advance. So we took profits. If the stock goes down two or three points, the trust will be right back in there, but otherwise, it's just gotten too rich.'
What's the bottom line?
"Next week, I want you to be ready to buy some stocks into weakness, namely JNJ, 3M and especially Honeywell," said Cramer. "The rest, including Apple, just sit back and listen, and then we will make the decisions, not before the quarters."
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