Cramer’s Key Earnings Reports

“Next week, we cross the tracks into earnings season,” Jim Cramer said on Friday’s “Mad Money” TV show. And just like the real world, investors need to stop, look and listen before pulling the trigger, he said. Cramer told viewers to use next week’s earnings announcement to test  your investment thesis to see if the economy is on the right track, or if things are getting worse. First, Cramer said he will be watching Xilinx Inc. (XLNX) an Cypress Semiconductor Corp (CY), which announce earnings on Wednesday and Thursday and provide insight into his Mobile Internet Tsunami thesis. Also reporting on Thursday will be Nokia (NOK). He expects disappointing results from Nokia, but if XLNX and CY report solid numbers, he said he would use that information to buy more Apple Computer Inc. (NASDAQ:AAPL). Cramer said he will know if he’s right about his multiyear banking sector turnaround once we hear the results from JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC) and Citigroup Inc. (C). He predicted that JPM and BAC will “blow away numbers,’ but he’s pretty sure Meredith Whitney will trash them regardless. Cramer said both Citigroup and Goldman Sachs Group Inc. (GS) should surprise to the upside. In regards to Goldman, Cramer said if the stock gets hit because management isn’t bullish enough on the conference call, he would use that opportunity to buy the stock. However, Cramer warned investors: “If Goldman’s bad, everything will dip, as GS has been the ultimate barometer of this stock market,” Cramer said. There are other areas of the market to test as well, he mentioned. Johnson & Johnson (JNJ) and Abbott Laboratories (ABT) will report on Tuesday and Wednesday, and Cramer thinks both will report great numbers.  But if the health-care debate is still raging, both names could be sent lower. Cramer said use that opportunity to buy the stocks. According to Cramer, Google (GOOG) should deliver a “monster earnings report,” on Thursday as the search giants steals advertising business from print. He said the stock is working its way to $600 a share. Finally, Cramer said CSX Corporation (CSX) will provide the best insight into the health of the economy, because everything of significance, gets shipped by rail. The market’s next move up or down, will depend largely on what this company says. “CSX knows the truth,” Cramer said. “They will teach us.” Join the fastest growing community of small cap investors at Stockhideout.com

Leave a Response