Mad Money

Cramer's game plan: An earnings bonanza brings many chances to buy

Earnings bonanza brings many chances to buy
VIDEO2:3102:31
Earnings bonanza brings many chances to buy

As the busiest week of earnings season came to a close, Jim Cramer breathed a sigh of relief despite Friday's mild pullback caused by a weaker-than-expected GDP number.

The "Mad Money" host said that with the federal government funded through the next week, investors can finally relax and gear up for yet another earnings-filled agenda.

With that in mind, here are the stocks and events on Cramer's radar this coming week:

Monday: Advanced Micro Devices, Cardinal Health

Advanced Micro Devices: After shares of competitor Intel slid on its earnings miss on Thursday, Cramer is unsure that even the best of earnings reports from this chipmaker will garner a positive market reaction.

"As I have repeatedly said, there is nothing wrong with the company AMD," Cramer said. "What can I say? The market's fallen out of love with last year's darlings."

Cardinal Health: Once the health care services company reports earnings, Cramer thinks investors will start to notice its monumental acquisition of part of Medtronic's business, which will make it a more streamlined hospital supplier.

Tuesday: CVS Health, Mastercard, Apple

CVS: The health care retailer's stock has been under pressure lately as even pharmacies are squeezed by the rise of Amazon, but Cramer says there could be a hidden upside to earnings.

"All that said, it's hard to really dislike a well run company like this that sells at just 13 times earnings. I say wait and see. Maybe numbers come down, maybe that's your chance," the "Mad Money" host said.

Mastercard: Other payment services names like Visa and PayPal have reported great numbers this quarter, so Cramer expects a good report from Mastercard as well.

"Here's one where you might want to see if the stock gets hit after it reports so you can come in at a lower price," he said. "That's been the pattern with the stock of this amazing company. It might be a great way to get in on a trend that still has a lot of room to run: the paper to plastic secular growth story."

Apple: Expectations are sky-high for the tech titan's after-the-bell earnings report, and Cramer thinks they are justified.

"Apple's doing so many things right. It's making the best products, developing a deep ecosystem with a substantial service revenue stream," he said.

Plus, Apple's upcoming iPhone release is rumored to have an array of new features that makes the smartphone more functional and easier to handle, which should boost sales and new customer numbers, Cramer said.

The company also stands to massively benefit from repatriation if the administration is able to implement it. All said and done, Cramer says investors should own the stock, not trade it, and eager buyers should hope for a post-earnings dip so they can buy it at a discount.

Wednesday: Sprint, Facebook, Kraft Heinz

Sprint: Cramer likes the stock of this telecommunications player, which will report its quarterly earnings Wednesday morning, but the "Mad Money" host is concerned that it may just be pushing along instead of really growing.

T-Mobile CEO John Legere told Cramer he may be open to buying Sprint, but antitrust issues may stand in the way of a merger or acquisition, Cramer warned.

"Any merger would lessen the competition for something that's become a modern day necessity," he said. "You really have to own these for fundamentals, not potential deals, and if that's the case, T-Mobile remains best of breed."

Facebook: The social media colossus reports earnings after the bell, and unless its numbers are substantially better, Cramer expects a slight sell-off.

"I like how competitive Facebook is," the "Mad Money" host said. "If you don't own it now, I think you might as well wait to see if we get that kind of weird sell-off that we usually get even after it reports a great number."

Kraft Heinz: Investors will be tuned into the consumer goods name when it reports because it always seems to be on the lookout for a takeover candidate despite botching its proposal to buy Unilever last quarter.

Cramer prefers Unilever's stock, but said that if Kraft Heinz floats the idea of a deal, it could get a boost.

"We know, though, it takes two to tango, and I'm hard pressed to see who would possibly want to sell in that consumer packaged goods industry as the remaining players seem to have no inclination to let go of the reins," Cramer said.

Thursday: Dunkin' Donuts, Activision Blizzard

Dunkin' Donuts: Cramer contended that this coffeemaker, which will report earnings Thursday, "has quietly become a better investment than Starbucks over the last year, going from $46 to $55, while Starbucks has only traveled up four points."

The "Mad Money" host credited the company's execution for the rise, saying that it has outperformed Starbucks in terms of stemming the U.S. slowdown.

Activision Blizzard: The gaming sector is one of Cramer's favorite secular growth stories in the stay-at-home economy, and Activision Blizzard's earnings reports have a tendency to spur selling.

"I say the trend's your friend," Cramer said. "This franchise is worth buying if it gets hit."

Friday: Non-farm payrolls

The Labor Department will release its monthly non-farm payroll data. The hiring statistics could have a detrimental effect on bank stocks if they are low, but Cramer expects the opposite.

"If April turns out to have been a robust hiring month, and I think it will be, that gives the Fed breathing room to raise interest rates twice, and therefore the bank stocks will soar," he said.

So with Washington policymakers at bay for now and the market digesting this week's madness, Cramer said to focus on the stocks that get unjustly beaten down for chances to buy high quality names next week.

"This week we have a couple of stocks that tend to act badly after they report. Those are your best bets for investments. Otherwise, get ready for still one more opportunity to buy some Apple stock as Wall Street's naysayers try to say its best days are behind it. But, of course, they say that to each other on their iPhones," the "Mad Money" host said.

Watch the full segment here:

Cramer's game plan: An earnings bonanza brings many chances to buy
VIDEO11:4311:43
Cramer's game plan: An earnings bonanza brings many chances to buy

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