From earnings to developments in China and the latest COVID news, Jim Cramer laid out his game plan for next week during Friday's Mad Money show.
On Monday, Cramer said he’ll be looking for the latest updates on China’s Evergrande Group, as well as who the next “enemy” of China might be. The country is cracking down and that’s making it hard on investors and businesses.
On Tuesday, we’ll get earnings from Micron (MU) - Get Micron Technology, Inc. (MU) Report. Let’s wait and see how the company does, Cramer suggested, while also saying he’d buy dips in Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report if they get hit on Micron's quarter. Thor Industries (THO) - Get Thor Industries, Inc. Report will also report earnings.
On Real Money, Jim Cramer writes that if analysts had more real life experience, they could help people make a lot more money. Instead they focus only on the wrong things. Read more of what he says about earnings, analysts and their reactions to Nike, Costco and Salesforce.
Investors should get a good look at how small- and medium-sized businesses are doing when Cintas (CTAS) - Get Cintas Corporation Report and Herman Miller (MLHR) - Get Herman Miller, Inc. Report report their quarterly results on Wednesday.
Thursday will be busy, with Bed Bath & Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report reporting, along with CarMax (KMX) - Get CarMax, Inc. Report. Paychex (PAYX) - Get Paychex, Inc. Report will also report earnings and Cramer likes buying the dip in this name. McCormick (MKC) - Get McCormick & Company, Incorporated (MKC) Report will report too, and while it’s a great company, Cramer suggested avoiding that name for now.
On Friday, Cramer will want to get a look at the latest COVID-19 data, to see which way the case count is trending.
Here’s the bottom line: Get ready, Cramer said, because after next week we’ll get the monthly jobs report and earnings season will begin in force. Next week is like the “calm before the storm,” he added.
Executive Decision: Good Rx
In our complicated world of healthcare, GoodRx is just trying to help Americans make sense of all the information out there, Hirsch said.
The average consumer takes several weeks to get in with the doctor, while GoodRx can provide them with straightforward answers and videos to help alleviate some of that stress.
The stock is up since GoodRx was last featured on Monday Money in July, (up about 14% in the past three months). Cramer said he continues to like it and is not worried about potential competition.
Am I Diversified?
On the show’s “Am I Diversified” segment, Cramer helped investors with their portfolios.
The first viewer’s portfolio consisted of Verizon (VZ) - Get Verizon Communications Inc. Report, Procter & Gamble (PG) - Get Procter & Gamble Company Report, Johnson & Johnson (JNJ) - Get Johnson & Johnson (JNJ) Report, Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report and MetLife (MET) - Get MetLife, Inc. (MET) Report.
This is not as diversified as it could be, Cramer said. Bristol-Myers and J&J clash too much, and Cramer prefers the latter. Instead of Bristol-Myers, he would want an auto stock.
The next caller’s portfolio included Amazon (AMZN) - Get Amazon.com, Inc. Report, Nvidia, PayPal (PYPL) - Get PayPal Holdings Inc Report, Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report and DraftKings DKNG.
These are incredible companies, Cramer said, approving the portfolio.
Another caller’s portfolio included Walt Disney Co. (DIS) - Get Walt Disney Company Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Tesla (TSLA) - Get Tesla Inc Report, Citigroup (C) - Get Citigroup Inc. Report and Amazon.
“I love this portfolio. I love it,” Cramer said. “This is the portfolio that I’m looking for.”
Next up, this caller’s portfolio included Applied Materials (AMAT) - Get Applied Materials, Inc. Report, ArcBest (ARCB) - Get ArcBest Corporation Report, BootBarn (BOOT) - Get Boot Barn Holdings, Inc. Report, RH Inc. (RH) - Get RH (Restoration Hardware) Report and Silicon Valley Bank Group (SIVB) - Get SVB Financial Group Report.
“I love this one too!” Cramer said, praising most of the businesses in this portfolio. ArcBest isn’t his top pick, but it will work, he added.
The final caller’s portfolio included Apple (AAPL) - Get Apple Inc. (AAPL) Report, Microsoft MSFT, Abbott Labs (ABT) - Get Abbott Laboratories Report, Lowe’s (LOW) - Get Lowe's Companies, Inc. (LOW) Report and NextEra Energy (NEE) - Get NextEra Energy, Inc. Report.
Cramer also praised this portfolio, calling it “amazing.” Although he wasn’t the biggest fan of NextEra, the portfolio is diversified.
Off the Tape
On the show’s “Off the Tape” segment, Cramer spoke with Ivy Zelman, CEO of Zelman and Associates. Zelman not only called the top of the housing market in 2005, but also the bottom in 2012.
In her new book, Gimme Shelter, she says that instead of being akin to gambling at a casino, the stock market is a way to build wealth — something that really resonated with Cramer.
She’s trying to remove some of the fear that many consumers have about the stock market and help close the inequality gap.
As for the housing market, she believes it’s still too early to call a top, but says she’s concerned that it’s too hot right now. Homebuilders seem to be building too many single family and multi-family homes.
Eventually, there will be a correction, she added.
Business Is More Than a Spreadsheet
On the show’s No-Huddle Offense, Cramer said that not everything in business can fit into a spreadsheet. He looked at three big U.S. companies that all had big news on Thursday.
Nike (NKE) - Get NIKE, Inc. (NKE) Report shares dropped 6% on Friday after disappointing earnings. This business is about sales and gross margins spread out in different geographies, Cramer said, explaining that the numbers out of China were disappointing.
Cramer asked, can we really believe that it was just supply chain issues and not a larger issue with China as a whole?
Costco Wholesale (COST) - Get Costco Wholesale Corporation Report had the opposite experience. Shares rallied 3.3% on Friday thanks to better-than-expected results. It’s time investors look at this as a revenue and subscription-based business, not a traditional retailer. The company now boasts more than 111 million members, he added.
Lastly, look at Salesforce (CRM) - Get salesforce.com, inc. Report. Every critic seemed to point out that Salesforce needed to acquire companies to grow. Now hitting all-time highs after its analyst day, it’s clear that’s not the case.
The company’s rising gross margins show that its acquisitions were accretive to the business and to its bottom line. Investors could have known that by simply following the free cash flow — or by following what CEO Marc Benioff has been saying for years.
Here’s what Jim Cramer had to say about some of the stocks during the Mad Money Lightning Round:
Helbiz (HLBZ) : “We’re going to stay away. It’s a bad business.”
Blade Air Mobility BLDE: “I’m a believer in this company. I want you to hold onto this bad boy.”
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At the time of publication, Action Alerts PLUS had a position in AMD, AMZN, AAPL, DIS, MSFT, ABT.