Cramer’s Game Plan: Stocks to Watch in the Week Ahead
If you're thinking that next week is going to be a quiet week, think again. Jim Cramer says there are a slew of events that could be market moving.
MONDAY MARCH 11
Monday, retail will be front and center. "We hear from Dick's, the largest sporting goods company out there," Cramer said. "And we have to be prepared for what they have to say about two of the biggest purveyors of sporting apparel, Under Armour and Nike. I would defer any decision about these two until we hear the Dick's conference call, and yes, I like Dick's too."
Then after the bell the energy trade will comes into focus. "We hear from Heckmann, the company that disposes of fracking water, something that's integral to the process of reaching hard to get oil and gas assets in these shales we always talk about. As the glut in natural gas grew, Heckmann's earnings got hurt, but it's been readjusting and recalibrating via acquisition and I think what they have to say will make us more patient for the eventual turn."
TUESDAY MARCH 12
On Tuesday Cramer said bulk shopping will steal the spotlight. "We hear from Costco," said the Mad Money host. "Here's a stock that's been on hold since it paid a huge special dividend last year. All that's happened in the interim is that the company has gotten stronger."
Cramer thinks the stock is attractive on a pullback, but isn't sure one is coming. "Given that Lowe's, Wal-Mart and Target all reported either subpar earnings or gave us tepid guidance, and yet still soared anyway, I just don't think Costco's going to go down very much, if at all. And if it does, it sure won't stay down for long."
Again energy comes into play on Tuesday. "Chevron hosts an important analyst meeting," said Cramer. "This is one of my favorite oil companies with terrific prospects and a long-term positive view of natural gas. Now I want to know a few things. For example, what are Chevron's plans for all of the natural gas in this country? How does it feel about all of the splitting off of refining and marketing operations?" Cramer will be listening closely.
WEDNESDAY MARCH 13
Cramer will be all about travel and leisure on Wednesday. "Starwood Hotels, one of my favorite companies, holds an analyst day, and I think it will be a great one," he said. "The CEO, has done a remarkable job growing this company, which includes St. Regis, Sheraton and W brands among others, and I believe travel is experiencing a huge rebound globally."
THURSDAY MARCH 14
First and foremost Cramer will be closely monitoring the results of the second round of bank stress tests. As Cramer said earlier in the week, he thinks the big winner will be SunTrust, a bank that failed the last time around. "I'm thinking that a nice return of capital, perhaps a gigantic buyback of 5% of the shares outstanding, and a sweet bump in the currently meager dividend might be in order," he said.
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Also, Cramer will be watching the shippers. "We get results from Diana Shipping," said Cramer. "Now, we've hated these dry bulk carriers forever, but you know what? The Baltic Dry Freight index, which measures the day rates for dry bulk, has, I believe, put in a bottom, and while Diana isn't necessarily cheap and has already run up 23% for the year, I bet we'll like what we hear when it reports."
In addition, beauty will be an important watchword. "We also get a report from Ulta Salon, a franchise beauty retailer that we liked for a very long time, but management turnover has us pulling in our horns. We're not touching Ulta anymore, and will be in total listen mode. I'm concerned about this one."
On top of all that, the big conglomerate United Technologies is expected to hold an analyst meeting on Thursday. "I would be a buyer ahead of the meeting if we get any price break in this rip-snorting market."
FRIDAY MARCH 15
Cramer will be keen to see some new economic data on Friday. "We get February Industrial production numbers," Cramer said. Although the Mad Money host doesn't usually highlight this number, he said this month it's worth watching because it was used by Alan Greenspan as an important touchstone. "I bet if we get a number that shows strong industrial production, these Bernanke blasters will call for his head for not raising rates immediately," Cramer said.
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