Cramer’s Earnings to Watch Next Week
In the week ahead, “Mad Money” host Jim Cramer will monitor the quarterly earnings results from a handful of companies. Here’s a look at his “Game Plan.”
To start, FedEx will report earnings on Tuesday. The Memphis, Tenn.-based company provides delivery services around the world. CEO Fred Smith is also an economist, Cramer noted, so he often uses his company’s data to comment on global growth.
“When FedEx reports a good number, it has taken the whole market up and the converse is true, too,” Cramer said. “Given the slowing of the global economy, I don't expect anything good from this company.”
Meanwhile, Jabil Circuit is also scheduled to report earnings on Tuesday. Cramer has high hopes for the company.
“This terrific contract manufacturer, meaning they make products for other companies, has been pigeonholed as a tech play,” Cramer said. “But they make a ton of other stuff in different industries, including health care and that's smoothed out any disappointments.”
Should Jabil’s earnings disappoint, though, Cramer thinks many tech stocks will fall in response.
On Wednesday, Bed Bath & Beyond will deliver earnings. The chatter on Wall Street suggests the home furnishings retail has struggled this quarter, as it faced increased competition from online retailer Amazon.com, Cramer said. He doesn’t buy into the rumors, but is concerned that its stock has run up too much.
“You might see this one trade up and you need to get ready for the post-quarter sell off so you can do some buying,” Cramer said. “In the meantime, let's thread the needle here by taking profits ahead of the quarter.”
Red Hat will also announce earnings on Wednesday. Typically, Red Hat’s stock sells off on expectations that the underlying company won’t meet Wall Street’s earnings expectations. If the company does meet expectations, though, the stock tends to rise sharply. In turn, Cramer recommends investors buy deep-in-the-money call optionsinto weakness ahead of the quarter, but then sell them after the company reports.
Auto dealership operator CarMaxwill post its earnings results on Thursday. In Cramer’s opinion, car buyers have been driving the U.S. economy lately. After all, building and selling cars involves a lot of people and that means jobs. He’s interested to see what executives have to say about the state of the industry.
After Thursday’s closing bell, Cramer will look for earnings from Oracle. The word on Wall Street is that this tech company is doing well, despite having exposure to Europe, he said. Still, Cramer doesn’t like to buy tech stocks in the summer months because it’s typically the sector’s weakest season.
Finally, Cramer will monitor Darden Restaurant’s earnings on Friday. Although the restaurant chain operator has benefited from lower gas prices and tempered food inflation, Cramer worries its stock has run up too much lately. In turn, he thinks expectations are just too high for the company.
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