Next week is another week of rapid-fire earnings reports, Jim Cramer told his Mad Money viewers Friday. That means investors need to keep their eyes open for stocks that decline on great earnings and do some buying.
Cramer's game plan next week starts off on Monday with earns from Estee Lauder (EL) - Get Estee Lauder Companies Inc. Class A Report and Diamondback Energy (FANG) - Get Diamondback Energy, Inc. Report, along with an analyst meeting from Merck (MRK) - Get Merck & Co., Inc. Report. Estee Lauder and Diamondback should be strong, but investors should just listen to what Merck has to say.
Next, on Tuesday, we'll hear from Pfizer (PFE) - Get Pfizer Inc. Report, CVS Health (CVS) - Get CVS Health Corporation Report, DuPont (DD) - Get DuPont de Nemours, Inc. Report and T-Mobile (TMUS) - Get T-Mobile US, Inc. Report, along with an analyst meeting from railroad Union Pacific (UNP) - Get Union Pacific Corporation Report. Cramer had positive things to say about all of them.
Wednesday brings earnings from General Motors (GM) - Get General Motors Company Report, where the company should update investors on the looming chip shortage. Scott's MiracleGro (SMG) - Get Scotts Miracle-Gro Company Class A Report will report earnings along with PayPal (PYPL) - Get PayPal Holdings, Inc. Report and Twilio (TWLO) - Get Twilio, Inc. Class A Report. Cramer was bullish on all three.
That was not the case with ViacomCBS (VIACA) - Get ViacomCBS Inc. Class A Report, which reports on Thursday. He said no one really knows where this stock should be trading. Also on Thursday is Penn National Gaming (PENN) - Get Penn National Gaming, Inc. Report, Regeneron (REGN) - Get Regeneron Pharmaceuticals, Inc. Report, Roku (ROKU) - Get Roku, Inc. Class A Report, Peloton (PTON) - Get Peloton Interactive, Inc. Class A Report and AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report, a favorite on Reddit. Cramer cautioned that Roku and Peloton have gotten expensive.
Finally, on Friday, we'll get the latest employment data and while investors are likely to point towards looming interest rate hikes, Cramer said the Federal Reserve isn't likely to make a move any time soon.
Executive Decision: Brunswick
In his first "Executive Decision" segment, Cramer spoke with David Foulkes, CEO of boatmaker Brunswick (BC) - Get Brunswick Corporation Report, which just posted monster earnings that included 50% revenue growth.
Foulkes said the momentum they saw in 2020 during the pandemic has carried over into 2021, leading them to another strong quarter with strength in all parts of their business. He said everything from boats to propulsion to parts and accessories all saw remarkable growth. He added that the first boat show of the year was just held in Florida and saw strong attendance and lots of interest in their refreshed lines of products.
Foulkes was also excited about their Freedom Boat Club, which is now available at 280 locations and boasts 40,000 members. He said overall, Brunswick's average boat buyer is two years younger than the industry average and their first-time buyers are five years younger than average. Bruckwick is also seeing a big uptick in women and minorities entering the sport.
When asked about inventories, Foulkes said it may take until 2023 or 2024 before inventories are fully restocked. He said they hired over 1,000 people during the quarter and are building as many boats as they can given supply constraints.
Executive Decision II: Clorox
Rendle said Clorox remains in a good position with strong brands, but admitted the company is seeing inflationary pressures in both commodities and transportation. She noted that it isn't too easy to tell which of these pressures are transitory due to the pandemic and which are going to stay with us. Clorox is responding however with measured price increases and innovation to drive margin expansion.
When asked about what post-pandemic life might look like, Rendle said many of the behaviors we've learned over the past year will be lasting ones. People want control of their environments, and that means cleaning more with Clorox products at home and on the go.
Turning to the company's ailing vitamin and supplement division, Rendle defended their decision to enter the highly-competitive space. She said while they need more time to achieve profitability, the category fits with their health and wellness strategy and she's confident in their long-term plans.
Executive Decision III: Logitech
For his final "Executive Decision" segment, Cramer checked in Bracken Darrell, president and CEO of Logitech International (LOGI) - Get Logitech International S.A. Report, the compute peripheral maker with shares up 250% from their 2020 lows 13 months ago.
Darrell said the work-from-home trend is here to stay and while many people scrambled to set up their home offices in 2020, they're now setting them up right with new products from Logitech.
Darrell admitted that many people still don't know about all of the great products they make, including cameras, microphones, keyboards and mice, but they're spending more on marketing this year to help address those concerns.
Logitech is also getting serious about their carbon footprint. The company has begun labeling all of their products to let consumers know just how much carbon goes into their products and they're offsetting that impact by planting trees.
When asked about the semiconductor shortage, Darrell explained that they're used to managing component shortages and so far have been able to work through the supply constraints.
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No Huddle Offense
In his "No Huddle Offense" segment, Cramer urged viewers to stop trying to tie President Biden's tax plan to stock prices. Tax hikes don't send stocks lower, he said, and anyone who thinks they do is wrong.
The first thing to realize is that 50% of all stocks are held by index and mutual funds. That means people don't typically sell them until they retire. Second, rich people don't sell stocks out of fear. That's because there really isn't any other place for them to park their money.
The third thing to realize is that complaining about taxes isn't the same as selling. In most cases, higher taxes don't encourage selling, it prevents people from selling.
Finally, Cramer said it's important to remember that the rich use their money to make money, and the best way to make money is making big bets in the stock market. Paying a few extra percentage points in taxes isn't going to change that.
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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.