Three companies that saw trading swing on earnings this week showcased opportunities for investors who can look past early bias and buy in when the rest of the market is skittish, CNBC's Jim Cramer said Wednesday.
"The actual hitters, the people who do enough homework" are able to step up and win while other investors sell off or hold themselves back amid morning lows, Cramer said. That's because they're able to disregard short-term chatter and look at the metrics that matter, he added.
Morgan Stanley, for example, reported earnings on Wednesday morning showing a higher-than-expected loan loss provision. But as investors tuned in to Morgan Stanley's earnings call, it became clear that the one line item that mattered was new assets, according to Cramer. That number was double the previous quarter, and the stock rallied off its lows.
Another example, also in the banking sector, was Goldman Sachs, which began trading Tuesday down in the pre-market, Cramer said. The dip may have been triggered by investors seeing a double-digit percentage decline in one of the firm's business units, Cramer said. That comparison was fallacious, he continued, given that the prior quarter was the "greatest quarter this particular division had ever reported."
In Big Pharma, Abbott Labs reported an "incredible quarter" on Wednesday with good performance on every line, Cramer said, adding that coverage underplayed the company's performance. Once investors were able to digest the full earnings presentation, Cramer said, Abbott's stock "powered higher."
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