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Mad Money Recap With Jim Cramer: A Plan for Earnings Season

Jim Cramer looks at what to watch for as earnings season kicks into gear next week.
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It's always difficult to navigate earnings season, Jim Cramer told his Mad Money viewers Friday, but there are opportunities out there if you know where to look.

Cramer's game plan for next week's action begins on Tuesday, after the long holiday weekend. He expects great earnings from Goldman Sachs  (GS) - Get Goldman Sachs Group Inc. (The) Report  but said Bank of America  (BAC) - Get Bank of America Corporation Report will be hard pressed to impress Wall Street. He still liked Netflix undefined, but said streaming fatigue is beginning to set in, making Roku  (ROKU) - Get Roku Inc. Report a better play.

Next, on Wednesday, there are a number of great earnings expected. Cramer was bullish on Unitedhealth Group  (UNH) - Get UnitedHealth Group Incorporated (DE) Report, Procter & Gamble  (PG) - Get Procter & Gamble Company (The) Report, and Morgan Stanley  (MS) - Get Morgan Stanley Report. He said the stock of United Airlines  (UAL) - Get United Airlines Holdings Inc. Report will depend on how vaccinations are going.

Then on Thursday, we will hear from railroads Union Pacific  (UNP) - Get Union Pacific Corporation Report and CSX  (CSX) - Get CSX Corporation Report. Cramer would be a buyer of the latter. We will also get earnings from IBM  (IBM) - Get International Business Machines Corporation Report, which is spinning off some legacy businesses, and Intel  (INTC) - Get Intel Corporation Report, which has a new CEO hoping to turn the chipmaker around.

Finally on Friday, it's Schlumberger  (SLB) - Get Schlumberger N.V. Report reporting and Cramer said share may rally in the short term, but he's still not bullish on oil over the long term.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

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Executive Decision

In his first "Executive Decision" segment, Cramer spoke with Matt Ehrlichman, chairman CEO of Porch Group PRCH, the home services software provider that's helping individuals relocate with ease.

Ehrlichman explained that Porch providers software to over 8,000 home services providers and helps them operate more efficiently and look better against their competition. On the user side, Porch is then able to offer a comprehensive, stress-free moving experience that runs as smoothly as corporate relocations do.

Porch handles everything for consumers, from finding the best deal on homeowners insurance, to setting up movers and storage, to home inspections and even setting up utilities and getting your TV hung up on your wall.

Ehrlichman said Porch aims to make moving, which is the third most stressful time in people's lives, a whole lot easier. 

Playing 5G

In a volatile market, Cramer told viewers to focus on long-term secular themes, like the arrival of 5G wireless technology. Not only is 5G up to 100 times faster than current technology, it's also optimized for the next generation of Internet devices and applications. Cramer unveiled a new 5G index with 10 stocks he said are riding the 5G wave.

First up, T-Mobile  (TMUS) - Get T-Mobile US Inc. Report, the carrier with the largest 5G network. Next, Crown Castle  (CCI) - Get Crown Castle International Corp. (REIT) Report, the cell tower REIT with 3.4% yield. In the hardware space, Cramer chose both Apple  (AAPL) - Get Apple Inc. Report and 5G hotspot maker Inseego  (INSG) - Get Inseego Corp. Report.

Turning to 5G semiconductor makers, Cramer chose Marvell Technologies  (MRVL) - Get Marvell Technology Inc. Report, Skyworks Solutions  (SWKS) - Get Skyworks Solutions Inc. Report, Qualcomm  (QCOM) - Get QUALCOMM Incorporated Reportand Taiwan Semiconductor  (TSM) - Get Taiwan Semiconductor Manufacturing Company Ltd. Report as his favorites.

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TheStreet Recommends

Rounding out the list, Cramer picked Crowdstrike  (CRWD) - Get CrowdStrike Holdings Inc. Report for cybersecurity and Fastly  (FSLY) - Get Fastly Inc. Class A Report as the leader in edge network computing to help connect all of our 5G devices to the Internet. 

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Executive Decision II

For his second "Executive Decision" segment, Cramer spoke with Dave Girouard, founder and CEO of Upstart Holdings  (UPST) - Get Upstart Holdings Inc. Report, an AI-enabled lending platform that helps match consumers to lenders. Upstart came public in December.

Girouard said that all lending is moving towards artificial intelligence, and Upstart is alble to help their banking partners speed up approvals, lower loan losses and increase automation so that everything runs smoother for higher profit margins. He said the improvements versus traditional lending approvals are dramatic.

Currently, Upstart is only in a few segments of the lending market, like personal loans and now some auto loans, but Girouard said the opportunity for growth is tremendous.

When asked why the U.S. lags the rest of the world in AI, Girouard explained that other countries lack lending bureaus and other legacy systems, so they've been able to leapfrog the U.S. who it comes to this exciting new technology. 

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said there was a lot of "good stuff" in president-elect Biden's COVID plan. But Biden's plan attempts to build on the current plan, which Cramer said is a mistake.

Cramer explained that we need to make a clean break from the decisions of the past. We cannot handoff vaccines to 50 ill-prepared and underfunded states, he said. The states are in over their heads already, but we could turn to the military or to private enterprise to get the job done. Last night, Cramer highlighted Honeywell's HON efforts to vaccinate one million people in its home state of North Carolina. What we need, Cramer concluded, are more plans like that.

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Lightning Round

In the Lightning Round, Cramer was bullish on Boeing  (BA) - Get The Boeing Company Report, General Motors  (GM) - Get General Motors Company Report, Ford Motor  (F) - Get Ford Motor Company Report, Tesla  (TSLA) - Get Tesla Inc. Report, Surface Oncology  (SURF) - Get Surface Oncology Inc. Report and S&P Global  (SPGI) - Get S&P Global Inc. Report.

Cramer was bearish on United Continental  (UAL) - Get United Airlines Holdings Inc. Report, American Tower  (AMT) - Get American Tower Corporation (REIT) Report and Opko Health  (OPK) - Get Opko Health Inc. Report.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.