February 2010 Earnings To Watch
With the economy on the mend, the next few earnings seasons are set to give investors a good perspective on the trajectory of the overall economy, and individual company reports can do the same for specific segments of the market.Â
As earnings season comes to its midway point, Cramer has put together a list of 20 February 2010 earnings reports to watch; suggesting that if you pay close attention to these companies, you'll get a good handle on both the sector they represent and the overall health of the economy.
Keep in mind that Cramer is not specifically recommending these stocks. Instead, he is suggesting them as individual barometers - stocks whose earnings reports should guide your overall investment strategy - and give you an idea of where the rest of the pack is headed. And remember, if you missed the earnings, go back and listen to the conference call on the company's website. Cramer believes those calls can reveal hidden nuggets about a sector, or possible profits from pin action.
So, what are the most important earnings reports to watch, according to Cramer? Click ahead to find out!
Exxon (XOM)
Reports Earnings: Feb 1
When: Before The Bell
As America's largest company by market capitalization, Exxon Mobil's earnings will offer a gauge for the country's energy sector and the prospects for the future. Cramer has recently suggested that the company is a potential target as the government's next scapegoat.
Exxon's planned acquisition of XTO Energy also hangs in the balance of government regulation on a hydraulic fracturing - a natural gas drilling method which XTO employs - and has the right to back out of the deal if regulation is laid down. Cramer thinks this company's earnings report is definitely one to watch.
Humana (HUM)
Reports Earnings: Feb 1
When: Before The Bell
After Ted Kennedy's Senate seat turned over to the Republican side of the aisle, Cramer identified medicare-related HMOs as serious targets, as the huge government program faces potential spending cuts.
Cramer has also added Humana, along with other individual health-care stocks on his sell block for this reason. Cramer picked Humana as the health care company to watch, as its February earnings could give a pulse for the sector as a whole.
Anadarko (APC)
Reports Earnings: Feb 1
When: After The Bell
With Anadarko coming off a strong third quarter, the company is a good indicator of international energy demand, especially China, in which the company has exposure in the energy sector. Although the company's 2009 capital spending trended downwards, the CEO, Jim Hackett has stated that their CAPEX, depending on the price of commodities and growth possibilities, will increase in 2010. The company is also expected to announce their capital plans this February. Cramer also has selected the company as one of his top 10 natural gas stocks.
This upcoming earnings report will offer an indication of where the company and its peers are headed.
Dow Chemical (DOW)
Reports Earnings: Feb 2
When: Before The Bell
Cramer has identified Dow Chemical as a company with "underestimated earnings power", who has been the beneficiary of upgrades and has seen its stock rise as a result, a situation that has been typical of many of its peers. Andrew Liveris, recently speaking from Davos, although he maintained that the outlook for the company is uncertain, he suggested that 2010 will be better for the company than 2009. The company has also undergone restructuring that makes the company increasingly more exposed to specialty chemical products, which is expected to account for 80% of the company's business.
For these reasons, Cramer thinks Dow Chemical's earnings will be quite telling.
Emerson (EMR)
Reports Earnings: Feb 2
When: Before The Bell
Emerson Electric is one of Cramer's newest picks for dividend plays, with a 3.1% yield that has been raised for 53 consecutive years. Cramer also expects to have another dividend announcement early in February, that could potentially be linked with the company's earnings announcement on February 2nd. He's also been a fan of the firm, as it's a cyclical company which is well-exposed to the economy's rebound, offering two compelling reasons to follow Emerson's February earnings report.
Novo-Nordisk (NVO)
Reports Earnings: Feb 2
When: Before The Bell
After recently getting FDA approval for a new type of diabetes drug, the company may have paved the regulatory way for similar treatments coming out of peer companies. Cramer also sees drug stocks are classic recession plays, so Novo-Nordisk is his pick for whether this strategy will still benefit investors even as the economy recovers.
UPS (UPS)
Reports Earnings: Feb 2
When: Before The Bell
Shipping companies such as UPS and Fedex are routinely looked at as indicators of economy-wide sales, as they handle packages after transactions. If UPS earnings are good, this may bode well for retailers and consumer confidence. UPS, a company which upped its guidance early in January, is Cramer's pick to get the pulse of the shipping industry. Keep an eye on UPS when it reports earnings on February 2nd, and take note that Cramer recently recommended the company over its competitors.
Cisco Systems (CSCO)
Reports Earnings: Feb 3
When: After The Bell
Cramer has traditionally been a fan of this network-equipment maker, and has also included the company in his "Mobile Internet Index". He likes the company for its behind-the-scenes presence in the mobile internet community, and has identified the February 3rd earnings report of this Dow component as the one to watch to get a handle on the direction of the industry.
Pfizer (PFE)
Reports Earnings: Feb 3
When: Before The Bell
Another one of Cramer's New Dividend Plays, he has taken a liking to the company after its acquisition of Wyeth. Cramer has highlighted that the company has plenty of cash on hand, and now that the company has broadened its scope of products via acquisition, Cramer thinks its February earnings report will act as a nice gauge of the pharmaceuticals sector as a whole.
Visa (V)
Reports Earnings: Feb 3
When: After The Bell
A pure play on the credit card industry, it has a $38 billion market cap, over $10 billion more than its industry peer MasterCard, and gives a broad perspective on the health of the sector. Cramer thinks you should watch Visa's earnings closely, as credit card companies are often looked at to gauge the health of the American consumer, along with their willingness to spend. Cramer also made the call that Visa's stock could reach $100.
Mastercard (MA)
Reports Earnings: Feb 4
When: Before The Bell
Just like Visa, getting a handle on the health of the credit card industry can tell you a lot about the economy and market as a whole. With American Express (AXP) and Capital One already reporting in January, Mastercard's announcement in February will round out this important sector.
Coca-Cola (KO)
Reports Earnings: Feb 9
When: Before The Bell
With uncertainty coming out of Washington on health care, financials and the overall economy, Cramer has been pushing names that are more immune to any changes coming out of the nation's capitol. He's suggestedstocks that are outside of Washington's scope, which are generally consumer staples, and Coca-Cola is one of them. Keep an eye on their February 9th earnings to get a feel of how these companies fare compared to the overall market.
Walt Disney Co. (DIS)
Reports Earnings: Feb 9
When: After The Bell
The major media and entertainment company is looking for new ways to expand its revenue streams, most notably with its recent partnership with Apple and its new iPad device. Cramer also lists this stock as one of the 10 to buy your kids in 2010, in part because of the company's brand recognition.
Disney is Cramer's media company to watch as we move into the second half of earnings season. Also, check out Cramer’s recent interview with Disney’s Bob Iger.
Prudential Financial (PRU)
Reports Earnings: Feb 10
When: After The Bell
Announcing its earnings after the bell on February 10th, this insurance company has been identified by Cramer in the past as "key" to an economic recovery. His point is well taken, especially when you see that the stock price is up over 500% from its March lows. Positive earnings news from this company could also be key for the health of the economy moving forward, so Cramer has highlighted it as a report to watch.
Flir Systems (FLIR)
Reports Earnings: Feb 11
When: Before The Bell
Flir Systems, a company which produces infrared cameras, night vision and thermal imaging systems, is one of Cramer's picks for stocks related to national security and anit-terrorism. The company's products can be found everywhere from soldiers on the ground in Afghanistan to security checkpoints in major airports. The company gives a good cross-section of companies exposed to homeland security spending, which is why their earnings should be watched closely.
PepsiCo (PEP)
Reports Earnings: Feb 11
When: Before The Bell
Another stock that Cramer has identified as "outside Obama's glare" is Pepsi, in the political-economic sanctuary that is consumer staples. The second largest beverage manufacturer is worth watching, if you're looking to get a read on this segment of the market. Also, check out Cramer’s recent interview with PepsiCo’s CEO, Indra Nooyi.
Merck (MRK)
Reports Earnings: Feb 16
When: Before The Bell
Cramer has identified Merck as a "recession" stock, but as the country emerges from the crisis, the health of this pharmaceuticals company will help investors gauge the industry and the way the potential for a complete recovery.
Hewlett-Packard (HPQ)
Reports Earnings: Feb 17
When: After The Bell
The major hardware manufacturer, which is expected to report earnings on February 17th, is also on Cramer's list of companies to watch throughout the rest of this earnings season. The company, which is newly off a digital music venture in Europe, is extending itself into new areas, and should provide an interesting gauge on the consumer and business technology market.
Wal-Mart (WMT)
Reports Earnings: Feb 18
When: Before The Bell
The world's largest retailer may also be one of the best indicators for what is happening in the general economy. It's a stock that Cramer still likes and can give a perspective on how  consumers are spending and determine whether consumer behavior is set for a change.
Home Depot (HD)
Reports Earnings: Feb 23
When: Before The Bell
The go-to location for do-it-yourself-ers, Home Depot may provide an interesting perspective on both retail and an improving housing market. Cramer also recommends the stock over both Sears and Lowe's, which are competitors in the same space.