Cramer: Next Week’s Top Earnings Reports
It’s Friday, and that means only one thing on “Mad Money”: Cramer offers his “Game Plan” for the coming week. Here’s his take on the most important events to watch.
Of all the earnings reports to come, Cisco Systems on Wednesday ranks the highest. Cramer thinks the weaknesses CEO John Chambers described last time around will be nonexistent for this quarter, as the networking business “is back and bigger than ever.” That said, CSCO has a tendency to run up ahead of the number, so don’t be surprised if it sells off right after.
Watch Frontier Communications on Monday for news of cash flows and the wireline properties it bought from Verizon. Cramer likes this company, especially after CEO Maggie Wilderotter came on the show and defended her dividend, and he’s expecting still more good news from her next week.
Clean Energy Fuels , also on Monday, will offer a tell on that nat-gas legislation stalled out in Congress. The bill might have a better chance of passing now that the Republicans control the House, and President Obama did mention the cleaner carbon fuel during its post-midterms speech. Of course, Cramer’s hopes for nat gas have been dashed before, which is why he won’t get his hopes up.
Fossil , up 44 percent since Cramer endorsed it on Aug. 19, should continue that run following its report on Tuesday. The stock hit a 52-week high on Friday, he said, but “I do think Fossil’s got more room to run, though, because it continues to take share of the accessories market.”
On Wednesday, Cramer will want to hear about Ralph Lauren’s raw costs, pricing power and China strategy. If those metrics look good, this could be a play on the holiday season. Given the stock’s gains headed into the quarter, he thinks RL could take a hit regardless of the earnings. But that would just be a chance to get this one at a better price.
Investors who followed Cramer’s call on NVIDIA , to buy the stock after its disappointing second quarter, are up 42 percent since then. He recommended selling half a position ahead of Thursday’s announcement and letting the rest ride. If the stock dips, you get the chance buy more. “Worst-case scenario,” Cramer said, “it doesn’t come down and we’ve made you some mad money.”
Disney has a tendency to go down after its earnings calls, but that, too, would be a chance to buy, Cramer said. He’s incredibly bullish on this stock and thinks it’s a perfect lifelong gift for kids. As for the business itself, he anticipates improvements in cable and more signs of a turn in the parks and resorts division.
Aside from earnings, Cramer told viewers to keep an eye on General Motors as its management will start next week to talk up the coming IPO. Regardless of what they say, though, he still likes Ford more. When you factor in Ford’s turnaround, its growing market share and improving balance sheet, the stock is just too cheap relative to GM’s expected trading price.
“I reiterate that the best way to play the GM IPO is to buy Ford on any weakness,” Cramer said.
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