Cramer's Stop Trading! Why So Many Companies Are Beating Estimates (7/20/09)

Stocks discussed on Jim Cramer's Stop Trading! TV segment, Monday July 20.

Caterpillar (CAT), Halliburton (HAL), Eaton (ETN)

The shorts are in shock as companies are beating estimates daily. While orders are down for Halliburton and Eaton, they are creating profits by containing costs. Even companies that do get beaten down, like Caterpillar, become attractive buys on weakness and on their long-term stories. As a result, bears have nowhere to hide; “Nobody really cares right now whether business is strong or not,” Cramer said. “They just feel these stocks got too hammered.”

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Comments

[maelstrom:]

Stating the obvious ...a hole

Jul 21 08:20 AM

[TCK:]

They are beating reduced estimates by cost cutting on lower revenues.

How long can this be continued ?

Jul 21 08:39 AM

[User 283977:]

Many companies are just low balling earnings estimates and than reporting results that beat those estimates. No need to lower costs, just reduce the earnings per share projections a few cents below the "Real" projected numbers… and the beat goes on …

Jul 21 12:24 PM

[lawrenceres...:]

IBM year end projection?

Jul 21 03:16 PM