NEW YORK (TheStreet) -- TheStreet's Jim Cramer adds Johnson & Johnson (JNJ) and Coca-Cola (KO) to the list of big-cap companies that have reported surprising earnings recently. The stocks join Alcoa (AA), Citigroup (C) and Wells Fargo (WFC).
Johnson & Johnson had a strong pharma number of +10, or +12 before currency translation. Cramer was "blown away" by Coca-Cola's ability to turn on the marketing dollars and turn around China, India, Russia and Brazil.
Cramer thinks both stocks have more upside, though he points out that investors should be wary of the fact that Johnson & Johnson ran heavily into the quarter. He says Coca-Cola has done "nothing," but it should start doing "something."
- JNJ's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 4.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- JNJ's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JNJ has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- JOHNSON & JOHNSON has improved earnings per share by 35.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JOHNSON & JOHNSON increased its bottom line by earning $4.82 versus $3.87 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $4.82).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $2,567.00 million to $3,519.00 million.
- You can view the full analysis from the report here: JNJ Ratings Report
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