With a Covid-19 vaccine use authorization from U.S. drug regulators imminent, CNBC’s Jim Cramer stated Friday the time is ripe to tackle some threat in the market.
“If you want to speculate, this is the time to do it, just speculate wisely,” the “Mad Money” host stated. “You’ve got my blessing to buy stocks into weakness as we move closer to the long-awaited vaccine, even if the much-needed stimulus bill is still up in the air.”
The feedback come after one other combined buying and selling session on the inventory market, closing a week when all the main averages posted declines and the Russell 2000 rose increased for the sixth straight week. The Dow Jones inched up 0.16% to 30,046.37. The S&P 500 slipped 0.13%, its third down day, to 3,663.46, and the Nasdaq Composite slid 0.23% to 12,377.87.
The day was marked by volatility as some buyers traded on vaccine hopes, whereas others traded on uncertainty of ever-rising day by day coronavirus circumstances and the stimulus invoice standoff in Congress, Cramer stated.
The Food and Drug Administration is anticipated to quickly authorize the vaccine from Pfizer and BioNTech.
“The market’s ratcheted back its expectations, so if we do actually get a stimulus compromise next week, stocks could come roaring back,” Cramer stated.
Cramer gave viewers a take a look at the earnings experiences he has circled on his calendar in the week forward. All projections are based mostly on FactSet estimates:
“If AbbVie can present some good numbers for its newer drugs that could replace Humira, that will take the pressure off that drug and the company, and I think the stock could soar,” Cramer stated.
“This is a veterinary medicine play, and if CEO Jeff Simmons has anything newsworthy, the stock could play catch-up,” Cramer stated.
- This autumn fiscal 2020 earnings launch: after market; convention name: Thursday, 11 a.m.
- Projected EPS: $2.36
- Projected income: $6.53 billion
- Q2 fiscal 2021 earnings launch: after market; convention name: 9:30 a.m.
- Projected EPS: 57 cents
- Projected income: $585 million
“We know Toll Brothers reported a very good quarter this week, and its stock just got crushed,” Cramer stated. “So unless Lennar and Herman Miller sell off hard going into their results, I suggest you take a pass. You’re going to hear too much chatter about how these are the last good quarters or maybe the penultimate good quarters. I think that’s wrong.”
- Q1 fiscal 2021 earnings launch: 6:45 a.m.; convention name: Eight a.m.
- Projected EPS: $2.05
- Projected income: $11.29 billion
“We start with Accenture, the information technology outsource consultant with a stock that tends to get hit on earnings,” Cramer stated. “Time after time, that’s been a terrific entry point.”
- Q2 fiscal 2021 earnings launch: earlier than market; convention name: 9 a.m.
- Projected EPS: 97 cents
- Projected income: $4.64 billion
“The market sure didn’t like the numbers from Campbell Soup, but I bet General Mills will be better received,” he stated. “Watch their pet food business … We know that category is on fire.”
- Q3 fiscal 2021 earnings launch: 7 a.m.; convention name: Eight a.m.
- Projected EPS: 1 cent
- Projected income: $5.84 billion
- Q2 fiscal 2021 earnings launch: 4:45 p.m.; convention name: 5:30 p.m.
- Projected EPS: $3.93
- Projected income: $19.37 billion
“We know that RAD (Rite Aid) will be one of the main distributors of the vaccine, along with CVS and Walgreens. We also know that FedEx will be shipping this thing all over the place. However, it’s not much of a needle mover,” he stated. “That’s bad news for Rite Aid, because they’re being beaten by CVS and Walgreens … but it’s good news for FedEx, with its thriving e-commerce business.”
- Q1 fiscal 2021 earnings launch: earlier than market; convention name: 8:30 a.m.
- Projected EPS: $1.27
- Projected income: $7.03 billion
“People will try to extrapolate the success of the iPhone 12 from [supplier] Jabil, but it’s a torturous affair because they’re not allowed to mention the word Apple by title,” Cramer stated. “Still, the analysts will figure it out, and they’re going to update their [Apple] forecasts on Friday.”
- Q3 fiscal 2021 earnings launch: earlier than market; convention name: 8:30 a.m.
- Projected EPS: 71 cents
- Projected income: $1.7 billion
“I expect them to say good things, but it might not matter at this point, especially since the stock’s already run a great deal from when they slashed the dividend,” Cramer stated.
- Q2 fiscal 2021 earnings launch: 4:15 p.m.; convention name: 5 p.m.
- Projected EPS: 62 cents
- Projected income: $10.55 billion
“Nike should report a fabulous number because all of its physical store markets are coming back and its direct-to-consumer business is on fire,” he stated. “I would be shocked if Nike doesn’t crush the estimates.”
Disclosure: Cramer’s charitable belief owns shares of AbbVie, Nike, CVS and Apple.