Earnings Season Ain’t Over Yet
Web Editor, "Mad Money"
Anybody wondering about the state of the economy needn’t look any further than the company numbers generated last quarter, Cramer said during Friday’s Mad Money.
The earnings of Intel , Apple , Macy’s , Home Depot – even Starwood Hotels – all pointed to a resurgent consumer and an improvement for businesses overall. This fact hasn’t escaped the market, Cramer said, and that’s why the Dow added another 122 points today while the S&P 500 climbed 1.4 percent.
Earnings season may have effectively ended, but there are still a number of reports that Cramer said he’d be watching during the coming week:
Buy J. Crew Group ahead of its Tuesday announcement, he said, and buy some more if the stock sells off after. He called JCG “the finest retailer in America right now,” and he expects this company to be a big beneficiary of a consumer who’s more willing to spend.
Investors who want a more speculative pick might buy Men’s Wearhouse before it reports on Wednesday. Cramer saw the company’s recent dividend increase as a bullish sign.
Dick’s Sporting Goods on Tuesday will offer a peek into what we might expect from Nike later in the month, and Under Armour , too. Goldman Sachs just added NKE to its conviction-buy list, and Cramer likes the stock, too. What to look for: Dick’s overall outlook and its strongest categories.
A snapshot of China’s real-estate market will come on Tuesday from E-House , a stock that Cramer panned back on Jan. 7. How serious is all the talk of the Middle Kingdom’s asset bubble? Cramer’s hoping that EJ will give us some answers.
Kroger releases its numbers on Tuesday as well. The most important data point here? What management has to say about private-label food sales. Recent reports – in The Wall Street Journal and from Del Monte Foods – have said that brand names are regaining their popularity among consumers. If that’s true, Cramer said, then it might be time to take profits on Treehouse Foods and Perrigo .
On Wednesday, stay away from Carrizo Oil & Gas if natural gas is dropping back to $4.50 by Tuesday afternoon, Cramer said. And choose Diageo and its 2.8 percent dividend yield over Brown Forman , which we’ll also hear from that day.
Lastly, there’s Clean Energy Fuels , one of Cramer’s favorite natural-gas picks. He’s hoping to hear something positive about the NAT GAS Act of 2009. Any good news and he expects Bank of America Merrill Lynch the following day to reiterate its January upgrade of the stock.
“It could be an opportunity” for investors if that plays out, Cramer said.
Cramer's charitable trust owns Apple, Home Depot and Intel.
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