Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, August 24.
No matter what the market is fretting about, the trade war or international turmoil, the stock price will go higher on better than expected earnings. "Analysts and investors were just too darned pessimistic, or too political, which amounts to the same thing these days, so they kept being blindsided by everything that's going right," said Cramer. With the earnings season almost over, he spoke about his game plan for the week which is loaded with retail earnings.
Earnings: Phibro Animal Health (NASDAQ:PAHC)
Phibro manufactures medical products for livestock and like all other stocks tied to 'Humanization of Pets', this is up for the year.
BJ's will post their first earnings as a public company and Cramer hopes they post good numbers as shown by Walmart subsidiary Sam's Club.
Cramer has been a fan of Best Buy for the past two years and he believes that Amazon will not crush the company. "As electronics keep getting bigger and more sophisticated, you need a human to help explain it or install it," he added.
He has high expectations from Tiffany as he believes new CEO Alessandro Bogliolo is doing a good job. He recommended buying some stock before the earnings and some after.
Cramer will be watching Hain Celestial closely to see the management plans for future growth.
Tilray is likely to benefit from the legalization of recreational marijuana in Canada in October. However, Cramer considers Canopy Growth (NYSE:CGC) a better investment.
Dick's Sporting Goods and PVH should benefit from positive apparel trends. Both the stocks are up in 2018.
Cramer's favorite Salesforce will report earnings and he expects excellent results from them.
Earnings: Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Burlington (NYSE:BURL), Signet (NYSE:SIG), Campbell Soup (NYSE:CPB), Ulta (NASDAQ:ULTA), Lululemon (NASDAQ:LULU), Nutanix (NASDAQ:NTNX), Zuora (NYSE:ZUO)
Both Dollar Tree and Dollar General source a lot of their products from China. Their earnings will show how hard tariffs have been for their profitability. Cramer prefers Dollar General between the two.
Burlington is expected to report good numbers. "You have to go to one of their locations to see it with your own eyes. Mine in Brooklyn is packed," said Cramer. He is also betting on a good quarter from Signet, which has a new management.
Avoid Campbell Soup due to the expensive acquisitions weighing on their balance sheet.
Cramer expects good numbers from Ulta as it could benefit from J.C. Penney struggling. "Penney has a ton of Sephoras in its stores, and that's Ulta's biggest competitor," he added.
Lululemon is certainly going up due to apparel. "If LULU goes down before it reports - pounce! This is a go-to name on weakness," said Cramer.
Buy Nutanix before earnings. Zuora is also expected to report a good quarter. Both of them are in one of the hottest themes - subscription and cloud.
"There are plenty of consumer names reporting, and so far this earnings season, very few of those have turned out to be losers," concluded Cramer.
Viewer calls taken by Cramer
Will politics affect large cap stocks? Cramer recommended investing based on strong fundamentals and not politics.
Editor's note: The remainder of the show was a repeat of an earlier broadcast.
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