Sign in Subscribe
Pharmaceutical industry

Jim Cramer's Market Insights: Earnings Onslaught Awaits

Strategic Insights

— 2 min read

As investors prepare for the earnings onslaught this week, Jim Cramer cautioned against making snap judgments during this time of year, citing that such decisions often turn out to be dead wrong. Cramer identified several key stocks and sectors to watch, including Halliburton, Valeant Pharmaceuticals, and IBM, among others. He also highlighted several oil stocks, including Nordic American Tanker, which has doubled in value over the past 12 months and boasts a dividend approaching 10%.

Key Takeaways:

  • Cramer expects investors to make mistakes in their earnings judgments, advising to wait and see how companies perform before making investment decisions.
  • Key stocks to watch this week include Halliburton, Valeant Pharmaceuticals, IBM, Boeing, General Motors, Kimberly-Clark, Kinder Morgan, 3M, Caterpillar, Eli Lilly, Alphabet, Amazon, and Microsoft.
  • Cramer recommends buying Nordic American Tanker, citing its strong dividend and favorable industry trends.
  • The economy slowing down prompts big money managers to open their playbooks and start buying growth stocks, such as biotechs and technology.
  • On the second day of the earnings week, investors look to consumer staple stocks, including Pepsico, Kimberly-Clark, and Eli Lilly, to hedge their bets.
  • Stephen Weisz, president and CEO of Marriott Vacations Worldwide, attributes the market's overreaction to the company's earnings miss to currency pressures in Latin America and timing issues.
  • Cramer believes Marriott Vacations Worldwide provides a good entry point for investors, citing the company's strong brand and lack of disruption from competitors like AirBNB.

Statistics:

  • Halliburton's merger with Baker Hughes is a key focus for Cramer this week.
  • Valeant Pharmaceuticals' response to the drug pricing kerfuffle is a major concern for investors.
  • IBM's cloud business replacing its legacy services is a crucial development to watch.
  • Kimberly-Clark's position in the consumer staples sector makes it a strong candidate for growth.
  • Kinder Morgan's Enterprise Product Partners and Energy Transfer Partners are preferred over the company itself.
  • Nordic American Tanker has doubled in value over the past 12 months.
  • The dividend for Nordic American Tanker is approaching 10%.
  • Pepsico, Kimberly-Clark, and Eli Lilly are key consumer staple stocks to watch during the earnings week.

Sources:

  • http://www.thestreet.com/madmoney/index.html
  • http://www.thestreet.com/story/13327045/1/memorial-resource-stands-out-in-depressed-oil-and-gas-sector.html
  • http://realmoney.thestreet.com/articles/10/16/2015/anatomy-rally-simpler-you-think
  • http://www.thestreet.com/story/13280164/1/jim-cramer-s-mad-money-recap-buy-growth-where-you-can.html
  • http://www.thestreet.com/story/13326377/1/marriott-vacations-worldwide-vac-stock-tanked-on-earnings-results-guidance.html
  • http://www.thestreet.com/story/13325618/1/marriott-vacations-worldwide-vac-weak-on-high-volume.html

Read more