NEW YORK (TheStreet) -- Several major technology companies such as Apple
(AAPL - Get Report), Facebook
(FB - Get Report), Netflix
(NFLX - Get Report) and Amazon
(AMZN - Get Report) reporting earnings this week, TheStreet's Jim Cramer believes these will be interesting stocks to watch as the growth stocks become value plays.
Cramer says Facebook could be the most difficult to read and suggests watching it to see if it reports such outsized revenue and earning number that it "breaks out of this vortex of either value or growth."
As for Apple, Cramer says it is a growth stock that has turned into a value play at these levels.
For more from Cramer about these stocks, click here.Must Watch: Jim Cramer: Watch Apple and Facebook Amid Growth-to-Value Transition
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FB's very impressive revenue growth greatly exceeded the industry average of 11.7%. Since the same quarter one year prior, revenues leaped by 63.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although FB's debt-to-equity ratio of 0.03 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 11.46, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 566.66% and other important driving factors, this stock has surged by 121.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Internet Software & Services industry and the overall market, FACEBOOK INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FB Ratings Report