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Morning Bell With Jim Cramer: Buy Union Pacific

Jim Cramer shares stock-market news including the earnings of United Airlines and Union Pacific and discusses FAANG stocks during earnings season.

Dow futures are falling over 200 points on Friday as Covid-19 infections surge across the globe. TheStreet shared its technology stock winners of the Biden Presidency on Friday.

In the last episode of Mad Money, Jim Cramer said booming housing numbers are good news for the economy and a bridge to recovery.

TheStreet's Katherine Ross and Cramer are talking about the earnings of United Airlines and Union Pacific and why it's crucial to hold on to FAANG stocks during earnings season.

United Airlines: Buy Or Sell?

United Airlines  (UAL) - Get United Airlines Holdings Inc. Report shares dropped Thursday after the airline carrier's fourth-quarter loss widened as the coronavirus eroded travel demand. United Airlines reported a loss of $1.9 billion, or $6.39 a share, on revenue of $3.41 billion, compared with analyst estimates of a loss of $6.13 a share and revenue of $3.42 billion.

The airline carrier’s full-year net loss of $7.07 billion was the largest since 2005, according to FactSet.

Cramer said United's Scott Kirby is making some sense when he talks about the need to have masks and testing but he too is a victim of the national effort. "His company is really under the gun because they do a lot of business overseas and there is so little travel going on. They'll make it."

Union Pacific: Buy Or Sell?

Shares of railroad giant Union Pacific  (UNP) - Get Union Pacific Corporation Report dropped Thursday despite the company announcing fourth-quarter results that topped analyst estimates for the period.  

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"These outstanding results demonstrate the true potential of our franchise as we leveraged all three profitability drivers simultaneously -- volume growth, productivity, and pricing -- to produce record fourth-quarter results," said CEO Lance Fritz.

The company also said it repurchased nearly 4 million shares in the fourth quarter at an aggregate cost of $749 million. 

Cramer said he would buy this rail stock at the current level because he thought the transport company had a good quarter. "You don't get much chance to do a 1.8% yield. They bought back a lot of stock."

FAANG Stocks

Cramer said he has been steadfast in liking the FAANG stocks (Facebook  (FB) - Get Meta Platforms Inc. Report, Amazon  (AMZN) - Get Inc. Report, Apple  (AAPL) - Get Apple Inc. Report, Netflix  (NFLX) - Get Netflix Inc. Report, and Alphabet  (GOOGL) - Get Alphabet Inc. Report) through thick and thin. 

Cramer said "They do have periods of underperformance that's been the whole way. We are not in one of those periods right now. This is what happens they have these bursts and you have to stay in them because you don't know when the bursts are going to be. Hold on and then you do well."

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