Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday July 19.
14 Earnings To Watch In The Week Ahead: McDonald's (MCD), Netflix (NFLX), DuPont (DD), Apple (AAPL), Ford (F), Pepsico (PEP), Facebook (FB), Boeing (BA), Celgene (CELG), 3M (MMM), Bristol Myers (BMY), Amazon (AMZN), Weyerhaeuser (WY). Other stocks mentioned: United Health (UNH), Lockheed Martin (LMT).
Cramer discussed 14 earnings reports to watch in the week ahead.
McDonald's (MCD) is expected to report a weak number, but the company is doing many things right. Look out for a buying opportunity.
Netflix (NFLX) is hard to game prior to earnings. If it reports outstanding growth, the stock should be fine.
DuPont (DD) may not report great earnings, but Nelson Peltz said last week he liked the stock and implied that it should spin off its paint business. Cramer would buy on a dip.
Apple (AAPL) has been miserable but now has company with the decline of other tech names. It can work its way higher if management announces a killer new product and a release date.
Ford (F) will go higher if management says Europe is under control.
Pepsico (PEP) is a company Nelson Peltz said should be broken up into a snack and beverage division. Cramer wants to hear management defend the business model. After its recent rise, the stock could be ahead of itself.
Facebook (FB) is a hated stock. Last quarter management reported an upside surprise and the stock still got hammered. Cramer doesn't think the stock will get love in the near term no matter what management says.
Boeing (BA) is a great play on the long-term aerospace cycle. Management has a 20 year growth plan and a huge backlog.
Celgene (CELG) has many drugs in the pipeline, so be prepared for raised numbers. Even though it has doubled in the past year, the biotech space has been "the most in favor I have ever seen it."
3M (MMM) played a significant role in the Dow's bull run. Cramer would ring the register on some of a position, because he is nervous about the impact China's slowing has had on 3M.
Bristol Myers (BMY) is a read on the cancer pipeline, and is a pharma that is acting more like a hot biotech.
Amazon (AMZN) is a "cult" stock, which means earnings may not matter; people trade AMZN on emotion. The best time to buy Amazon is after the sellers come in. Weakness in cult stocks usually equals a buy.
Stanley Black & Decker (SWK) and Weyerhaeuser (WY) are both excellent housing stocks. Cramer agrees with John Paulson that housing is back. Cramer would be careful buying either too far ahead of their earnings, however, because some data next week might affect housing.
Cramer took some calls:
United Health (UNH) is still a buy even though Medicare Advantage Program might be cut. The stock is still too low.
Lockheed Martin (LMT) is a best-of-breed defense stock.
Cypress Semiconductor (CY) makes touch screens for most non-Apple smartphones. It also produces programmable systems chips. The company has many ways to take market share, and it beat earnings by 7 cents. The stock has rallied 25% since Cramer last spoke to the CEO on January 25, and has tripled since Cramer got behind it in 2008. With a 3.5% yield, it is more shareholder friendly than many tech stocks. T.J. Rodgers explained the sudden upsurge in demand for CY's chips. Smartphone users are buying additional phones, because they are having to charge their more sophisticated phones frequently. T.J Rodgers says the company has visibility at least for the next quarter. It is designing the dashboard for Tesla (TSLA), which will involve touch screens. "You called the bottom last time and delivered," Cramer told Rodgers. "Stick with Cypress."
CFO Interview: Jack Hartung, Chipotle: Mexican Grill (CMG)
Chipotle Mexican Grill (CMG) saw a huge decline from $450 to $230 on worries its growth was slowing. Recently, it has been working its way back up to $400 on strong earnings, including a 5.5% increase in same store sales. The company has opened 44 new locations and is celebrating its 20th anniversary. CFO Jack Hartung says he is not worried about short-term swings in stock price as long as the company is performing. The company continues to find ways to deliver high quality ingredients without raising prices; "We haven't raised prices in 2 years." However, he admits creating a menu completely free of GMOs will be a challenge, and there might be a necessity for a slight increase in prices, but only after this goal has been accomplished. When asked if management is planning on expanding its Shophouse East Asian Noddle concept, Hartung noted a new store opening in LA, plans to open a few stores, but for now, the concept is being "nurtured" and not aggressively expanded. "CMG has been consistent," Cramer said.
Mad Mail: Canadian Solar (CSIQ), Xerox (XRX), Boston Private Financial Holdings (BPFH), Valero (VLO), Tesoro (TSO), Wells Fargo (WFC), Nokia (NOK)
Canadian solar (CSIQ) has strong fundamentals, but has had an enormous move. Cramer would ring the register.
Xerox (XRX) has been moving into tech outsourcing, a segment that now produces half of its revenues. It has rallied 40% so far this year. Cramer likes it.
Nokia (NOK) gave weak earnings, but the stock didn't decline. Cramer thinks NOK could have a 20% move.
Cramer says his call on Valero (VLO) was widely misunderstood. He is not overly bullish on VLO, he simply said he didn't see a reason to sell it on its huge decline. He doesn't want to own Tesoro (TSO).
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