Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday April 4.
7 Things To Watch In The Week Ahead: Alcoa (NYSE:AA), Constellation Brands (NYSE:STZ), Bed, Bath & Beyond (NASDAQ:BBBY), Pier 1 Imports (NYSE:PIR), Rite Aid (NYSE:RAD), Wells Fargo (NYSE:WFC), JPMorgan (NYSE:JPM). Other stocks mentioned: Verizon (NYSE:VZ), Ford (NYSE:F).
"They killed the Nasdaq," declared Cramer concerning the index that fell 2.6% on Friday, along with a 160 point decline in the Dow. The spate of IPOs, endless insider selling, and hot stocks trading at sales instead of earnings make it hard to call a bottom in these stocks and in the market in general. The tiny, speculative biotechs and newly-minted cloud plays need to sell off further before it is possible to trade comfortably in the current market. Cramer discussed earnings in the week ahead, and counsels caution.
Alcoa (AA) has been on a non-stop tear, up 60% from the bottom. AA has been doing well, but the increase is probably not sustainable, and there may be profit-taking on any lift in the stocks. AA provides an overview to other industries, including autos, construction, housing, aerospace and trucking.
Constellation Brands (STZ) has been doing well with Modelo brand. However, it has not had a tangible decline, and is not a buy ahead of the quarter.
Bed Bath and Beyond (BBBY) is well off its highs, but like STZ, it didn't get hit ahead of quarter on bad day. BBBY is "in no man's land."
Pier 1 Imports (PIR) has missed earnings a few times, but may beat numbers this time.
Rite Aid (RAD) may be the trade of the week ahead of earnings. RAD is a strong speculative pharmacy play.
Wells Fargo (WFC) and JPMorgan (JPM) report. Although the jobs number was decent, it didn't result in the kind of rise in interest rates that would be catalysts for these two stocks. However, their earnings reports are worth paying attention to.
Cramer took some calls:
Verizon (VZ) may see terrific numbers because of the Verizon Wireless acquisition.
Ford (F) has been waiting for a turn in Europe, and Europe does seem to be turning. "Hold onto it," Cramer said.
Cramer compared the top stock so far in 2014 in the S&P 500, Nabors (NBR) versus the star of the Nasdaq, Intercept (ICPT) and opined on which one would be the winner for 2014. Given that Intercept is a victim of the current rotation out of growth stocks, he doesn't see a dramatic upside for ICPT. The stock had an unsustainable rise of 383% last year, and dropped 9.6% on Friday, because it announced a secondary. The current trend is toward stocks like Nabors (NBR), which trades at a cheap multiple of 14, and while it isn't the best driller in the bunch, it has exposure to domestic and global drilling in a climate of climbing oil prices. As many expect the economy to turn around, cyclicals like NBR may see more upside. While ICPT has a promising orphan drug for liver disease in Phase 3, the potential FDA approval has already been baked into the share price.
Cramer took some calls:
Smith & Wesson (SWHC): There is a concern whether earnings can be maintained. This stock is okay, but it is not one of Cramer's favorites.
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