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Cramer: I'm Buying Coke on a Dip

NEW YORK ( TheStreet) -- Jim Cramer expects Coca-Cola (KO - Get Report) to have a good earnings report tomorrow, but admits there are some concerns.

The two items that could put the earnings and stock price at risk when Coke reports its second-quarter results ahead of the opening bell include 1) the high price of corn and 2) currency exchange.

Cramer knows that currency is going against this international company, but he notes there is a possibility they have some hedges in place to mitigate that risk. His concern is that people will not take out the impact from the currency swing to normalize the profit per share for the company and earnings will look worse than they otherwise would.

If that is the case, Coke shares will tumble tomorrow and take pharmaceutical companies, food companies and industrial companies that have similar international exposure down with them. Watch how Coke's stock reacts to earnings because it will be a big tell for these other international companies, Cramer says.

Cramer thinks that both Coke and Pepsi (PEP - Get Report) have been strong terrific stocks this year. He goes on to say "these are great American companies, and if they get hit, I do want to buy them even though I think the euro is still going lower."

-- Written by Lindsey Bell in New York.

>To follow the writer on Twitter, go to Lindsey Bell.

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