Stocks discussed on the in-depth session of Jim Cramer's Mad Money Program, Friday, April 22.
The coming week is the busiest due to earnings and Cramer hates it. "There will be more snap judgments and more wrong judgments than you can imagine," said Cramer. With that, he discussed his game plan for the week.
3M (NYSE:MMM) will report on Tuesday and Cramer advised waiting for the earnings before buying. Dupont (NYSE:DD) will report on Monday too and Cramer has liked the stock for some time due to the merger.
Procter & Gamble's (NYSE:PG) earnings will be the biggest test for the week. Cramer will be watching the stock after earnings since it has been vulnerable lately.
The big daddy of companies - Apple (NASDAQ:AAPL) will report on Tuesday. Own Apple and don't trade it. This quarter will not be special as the new phones this quarter might not be able to move the needle. The company is a classic value stock. "The market is lapping up deep cyclicals, so I don't think the damage will be nearly as bad as I keep hearing about," said Cramer.
Twitter (NYSE:TWTR) will also report earnings on Tuesday. Things have been uncertain for the company for a long time and it is likely to remain that way.
Cramer has been a fan of Boeing (NYSE:BA) which reports on Wednesday. He is concerned about the profitability of the 787 Dreamliner. Cramer would rather own General Electric (NYSE:GE) to get aerospace exposure than buy Boeing.
Facebook (NASDAQ:FB) will report after the close on Wednesday. If the stock is above $100 before it reports then buy it since it is at a sweet spot. If not, then the rotation out of high-growth into deep value stocks will hurt Facebook.
Domino's (NYSE:DPZ) will come out with earnings on Thursday and Cramer has been a fan of the company for a long time. He liked Yum! Brands' (NYSE:YUM) earnings also which makes Domino's even more worthwhile. It is going to be tough to beat the last quarter.
Amazon (NASDAQ:AMZN) is due to report on Thursday and Cramer is worried since another spending spree by the company could take its stock down as the market loves value instead of growth currently.
Exxon (NYSE:XOM) and Chevron (NYSE:CVX) will report on Friday. "These two have been among the best performers in the Dow Jones industrial average for 2016, and I think that this day may be a defining moment for oil," said Cramer.
Bottom line is that the market loves value and hates growth.
CFO interview - Skechers USA (NYSE:SKX)
Skechers rose 6% on Friday on Q1 earnings that were beyond the expectations of the market. Cramer thinks there is more room to run as the stock has tremendous growth ahead and is trading at only 13 times earnings. He interviewed COO and CFO David Weinberg to hear more.
"We are just scratching the surface, and no one knows how big it can be. We could be monstrously big," said Weinberg. The company aims to be everywhere with products for everyone. "In some places we are just absolutely tiny, with plenty of room to grow," he added.
The sales in China were great where the company opened its new distribution center. Russia is also growing and Weinberg thinks they are scratching the surface of the international market.
The drivers of growth for the company have been innovation, celebrity endorsements, comfort and style. Cramer thinks Skechers is a buy.
Market wants value over growth
The rotational bull market continues as money flows into value stocks from growth stocks. Case in point is Southwestern Energy (NYSE:SWN), the natural gas company that rallied 15% on an average quarter. It was mainly because the company survived the downturn in natural gas very well. "I think that at this pace, with oil up again, we are going to start seeing takeovers of both oil and gas companies before their stocks get away," said Cramer.
The other groups representing value were the banks. SunTrust (NYSE:STI) reported better than expected earnings and the entire group rallied. A similar pattern was seen in Norfolk Southern (NYSE:NSC) which went up 10.5% on earnings which led to pin action in other members of the group.
The market has been shunning growth currently. This was evident from the way the market reacted to the earnings from Starbucks (NASDAQ:SBUX), Visa (NYSE:V) and Pepsi (NYSE:PEP). "I think the momentum right now can keep this action happening, as long as commodities, especially oil, continue going higher," said Cramer.
The strength in oil signals global demand but this is still the first innings.
CEO interview - Southwest Airlines (NYSE:LUV)
The airlines group has had a tough time lately. Most stocks in the group are trading at single digit multiples. Southwest Airlines is the best in group in Cramer's opinion. They reported a good quarter on Wednesday where they generated $1.2B in free cash flow. Cramer thinks this is a well-managed airline. He interviewed CEO Gary Kelly to find out more about the quarter.
Kelly mentioned that Southwest continues to be the low cost leader along with great service and the best route network. The company has momentum and they have international terminals and destinations that customers love.
"I give all the credit to our people. I think they are the best in the business. We have very low cost, we offer great service, it's just a powerhouse combination," he added.
In the established markets, the company is growing. When the fares are high, Southwest enters the market with affordable rates so that more people fly over time.
The company has a strong buyback program and their advertising campaign also resonates with customers.
Viewer calls taken by Cramer
EMC (EMC): Ring the register and move on.
Intrexon (NYSE:XON): Cramer mentioned that the stock tumbled based on the bearish article "Intrexon: The Public Markets' Theranos Part 1 - Zika Virus Hype Is Nonsensical". In his opinion, the SEC shouldn't allow such slam jobs.
Bed Bath & Beyond (NASDAQ:BBBY): This company cannot report good numbers as it is spending a lot of money on omni-channel. Don't buy the stock as it's a value trap.
Kinder Morgan (NYSE:KMI): Cramer does not want to recommend the stock since they slashed their dividend. However, it is at the right spot to move higher. Cramer advised owning Schlumberger.
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