Cramer: Earnings to Watch Next Week
What follows is “Mad Money” host Jim Cramer’s “Game Plan” for the week of Monday, April 9.
MONDAY, APRIL 9
Before the market looks for earnings reports, Cramer thinks it will digest payroll employment data, which the U.S. Department of Labor will release the Friday before. But because the market is closed Friday, investors won’t have a chance to react to the news until Monday. Cramer thinks the data will be inline, but he said it’s still good to have on your radar.
TUESDAY, APRIL 10
Earnings season begins with reports from both Supervalu and Alcoa . The former is a “poorly run” supermarket chain, Cramer said. Its stock recently hit its 52-week low and has been a “serial underperformer” with a juicy 6.7 percent dividend yield. Company executives will probably claim they’ll preserve the dividend right up until they cut it, Cramer said. Needless to say, he doesn’t recommend Supervalu’s stock right now.
Aluminum maker Alcoa’s stock, on the other hand, is a much tougher call for Cramer. Thanks to CEO Klaus Kleinfeld, Cramer thinks this is a well-run company. But while the potential for aluminum use is high, he thinks there’s just too much being produced the world over, especially in China. So Cramer told viewers not to be surprised if the company reports some disappointing numbers after the close.
WEDNESDAY, APRIL 11
For a read on the agricultural and construction industries, Cramer plans to monitor Titan Machinery’s earnings results because it sells and rents equipment. It also carries earth moving equipment, so it could shed light on companies like United Rentals and Caterpillar .
THURSDAY, APRIL 12
Google will deliver earnings after Thursday’s close. Cramer thinks the Internet company is doing well in terms of earnings. Its stock is inexpensive, too. The company is well-positioned with mobile, social and cloud computing business segments. He expects there could be some confusion about its results, but is confident it’s doing just fine.
FRIDAY, APRIL 13
Finally, financial institutions JPMorgan Chase and Wells Fargo will report earnings before the opening bell. If JPMorgan CEO Jamie Dimon’s recent letter to shareholders is any indication, the company is making pretty good money, but could be doing much better if it wasn’t bogged down by government regulations. Nevertheless, Cramer is bullish on JPM and expects the stock could go higher.
Cramer thinks Wells Fargo is going to have an amazing report. He expects executives will say its cross-selling and mortgage businesses are getting stronger. The bank also benefits from having little to no exposure to Europe.
When this story was published, Cramer’s charitable trust owned JPMorgan Chase.
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