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Cramer’s week forward: Earnings season has been ‘much better’ than expected


CNBC’s Jim Cramer, marking the tip of earnings season, on Friday mentioned the slate of main company studies over the previous weeks have been “far better than anyone expected.”

The outcomes revealed, he mentioned, that traders have a spread of funding alternatives, barring any speculative buying and selling that has recently confounded Wall Street professionals.

The feedback come after main U.S. averages rose in Friday’s session, handing over back-to-back weeks of features that took the market to new highs. The Dow Jones Industrial Average moved 1% larger this week to shut at 3,458.40 and the S&P 50zero elevated 1.23% to three,934.83. The tech-heavy Nasdaq Composite outgained bot, climbing 1.7% larger to 14,095.47.

After the shut, Cramer mentioned market exercise has turn out to be much less unstable after a number of weeks of high-volume buying and selling.

“I like normal, because if we’re not careful, a good portion of this market might be headed down the highway to the danger zone,” the “Mad Money” host mentioned. “A day with less froth, like today, is a day where the rally feels more sustainable. But if the cannabis cohort and the short-busters and the incredible pumping and dumping I am seeing on the web is coming back, well you know I’m going to have to get more negative.”

Cramer gave his recreation plan for the week forward. Earnings-per-share projections are based mostly on FactSet estimates:

Tuesday: CVS Health, Zoetis, Ring Central and Occidental earnings

CVS Health

  • This fall earnings launch: earlier than market; convention name: 8:45 a.m.
  • Projected EPS: $1.24
  • Projected income: $68.73 billion

“CVS has been challenged as a drug store by Amazon and challenged on the health insurance side by a host of competitors,” Cramer mentioned. “If [CEO Karen] Lynch can raise numbers and back that up some solid traffic projections … I could see the stock finally getting the traction it deserves.”

Zoetis

  • This fall earnings launch: earlier than market; convention name: 8:30 a.m.
  • Projected EPS: 86 cents
  • Projected income: $1.74 billion

“I think you’ll see another round of gains in the humanization of pets stocks,” he mentioned.

RingCentral

  • This fall earnings launch: after market; convention name: 5 p.m.
  • Projected EPS: 27 cents
  • Projected income: $318 million

“RingCentral makes call center software, but they’ve also got a video conference platform that competes with Zoom and grows well,” the host mentioned. “The company’s aggressive and it grows rapidly.”

Occidental Petroleum

  • This fall earnings launch: after market; convention name: Wednesday, 11 a.m.
  • Projected losses per share: 58 cents
  • Projected income: $4.32 billion

“Many are predicting that the long bear market in oil is over. I am not so sure about that — too much supply — but if you believe it, no one is more bullish on oil than Occidental’s CEO, Vicki Holub,” he mentioned.

Wednesday: Shopify, Twilio, Fastly, Pioneer Natural Resources and Boston Beer earnings

Shopify

  • Q3 2021 earnings launch: 6 a.m.; convention name: 8:30 a.m.
  • Projected EPS: $1.26
  • Projected income: $913 million

Twilio

  • This fall earnings launch: after market; convention name: 5 p.m.
  • Projected losses per share: Eight cents
  • Projected income: $455 million

“I bet two of them deliver stellar, amazing quarters,” Cramer mentioned.

Fastly

  • This fall earnings launch: after market; convention name: 5 p.m.
  • Projected losses per share: 11 cents
  • Projected income: $82 million

“They’ve been rebuilding their credibility after a big shortfall in October,” he mentioned. “I think the problems are behind them.”

Pioneer Natural Resources

  • This fall earnings launch: after market; convention name: Thursday, 9 a.m.
  • Projected EPS: 70 cents
  • Projected income: $1.89 billion

“I don’t recommend many oil companies these days, but if you put a gun to my head to make me choose, I’d say, ‘would you please put the gun down and just go buy Pioneer,'” the host mentioned.

Boston Beer

  • This fall earnings launch: 4:15 p.m.; convention name: 5 p.m.
  • Projected EPS: $2.63
  • Projected income: $453 million

“If one more company enters this hard seltzer business, will it be too much for them to handle?” he mentioned. “I bet you can get still get another good quarter here, but do not overstay your welcome when you have guns coming at you like those guys. The field is getting crowded.”

Thursday: Walmart, Barrick Gold, Applied Materials, Roku, The Trade Desk

Walmart

  • This fall 2021 earnings launch: 7 a.m.; convention name: Eight a.m.
  • Projected EPS: $1.51
  • Projected income: $148.26 billion

“I want to hear about some initiatives and benchmarks that show us that Walmart’s still hungry,” Cramer mentioned.

Barrick Gold

  • This fall earnings launch: 6 a.m.; convention name: 11 a.m.
  • Projected EPS: 31 cents
  • Projected income: $3.25 billion

“I know that CEO Dr. Mark Bristow will give you a look at the only real growth and income play in the industry I trust,” he mentioned. “It’s a buy ahead of the quarter if you like gold.”

Applied Materials

  • Q1 2021 earnings launch: 4:01 p.m.; convention name: 4:30 p.m.
  • Projected EPS: $1.28
  • Projected income: $4.97 billion

“The stock has been rallying like crazy because of the [chip] shortage, but I think things are good enough for it to keep climbing, especially since the Biden White House seems to recognize the scale of the problem,” the host mentioned.

Roku

  • This fall earnings launch: after market; convention name: 5 p.m.
  • Projected losses per share: 6 cents
  • Projected income: $615 million

Trade Desk

  • This fall earnings launch: after market; convention name: 5 p.m.
  • Projected EPS: $1.88
  • Projected income: $292 million

“These companies are cord-cutting kingpins that are designed for the new world of watching and advertising sans cable. Everyone keeps wondering when their gains will stop,” he mentioned. “Me, I’m wondering why anyone expects them to stop when it took cable decades to supplant traditional broadcast TV.”

Friday: Deere and Magna earnings

Deere

  • Q1 2021 earnings launch: earlier than market; convention name: 10 a.m.
  • Projected EPS: $2.12
  • Projected income: $7.14 billion

“I bet Deere tells a story of higher commodity prices that has its order books brimming with tractors,” Cramer mentioned.

Magna

  • This fall earnings launch: earlier than market; convention name: Eight a.m.
  • Projected EPS: $2.58
  • Projected income: $13.03 billion

“We’ve got a red-hot auto market, they’re the best assembler, and these guys also assemble cars for compelling electric vehicle players, like Fisker,” he mentioned.

Disclosure: Cramer’s charitable belief owns shares of CVS Health and Walmart.

Disclaimer

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Call Cramer: 1-800-743-CNBC

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