Jim Cramer says drug and bank stocks will be on the red-hot griddle next week.
"I expect the drug stocks will be a mixed bag, but the banks should be in hog heaven," the "Mad Money" host said.
Before diving into bank earnings on Friday, Cramer will have his eye on the drug stocks, kicking the week off with the JPMorgan Healthcare Conference. Usually conferences aren't powerful enough to move the tape, but the JPMorgan conference is the biggest and most important of its kind and could provide powerful insight to the drug stocks.
Cramer will be focused specifically on the drug stocks that can break news. With this in mind, he reviewed the stocks and events on his radar next week:
Monday: Celgene, Amgen
Celgene: Investors are looking for the company to guide up numbers. The real question is how much. In an era of Trump tweets, Cramer was willing to bet that Trump will put any drug company under the microscope that raises the price of its cancer treatment. Thus, he'll have his eye on how Celgene handles its best-selling Revlimid anti-cancer franchise.
Amgen: Watch this stock, Cramer said. The company just snuffed Sanofi and Regeneron in a patent case on its new anti-cholesterol drug. It also has a large amount of cash overseas, which could be good news if Trump can enact relief on repatriation.
"I think Amgen can go much higher, perhaps on comments coming out of this healthcare conference," Cramer said.
Tuesday: Bristol-Myers Squibb, Valeant
Bristol-Myers: Cramer is looking to find out if there will be job cuts surrounding its Opdivo anti-cancer franchise that failed to hit some key clinical trial endpoints.
Valeant: With $30 billion in debt, it needs to do something to boost its cash flow. Cramer will be waiting to see if it announces a sale of a division or will roll back some of its unpopular price hikes.
Wednesday: KB Home
Unfortunately, KB Home is one of the most despised home builders out there for investors. But Cramer doesn't hate it, and wants to see what it has to say about orders with mortgage rates rising.
Delta is one of the cheapest of the airline options among the group. Known for its transparency, Cramer wants to see what could be moving the stock.
Friday: Bank earnings
In Cramer's 37 years of investing, he's never seen a good rally with staying power unless it's being led by the banks. JPMorgan, Bank of America and Wells Fargo are scheduled to report, and they are all winners of Trump's anticipated lowered regulation and rising interest rates.
Cramer is most interested in Wells Fargo, and believe it or not, he thinks it could have a very good quarter.