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NEW YORK (
) -- This earnings season is turning out to be incredibly bright, Jim Cramer said on
Friday. That only continues next week when this quarter's reports kick into high gear.
Cramer expects the markets to hinge on Monday's existing home sales and Tuesday's labor numbers. Investors can use weakness on either of those days to pick up a few great names.
will be in focus. Cramer expects the international story at VF to be strong and thinks Netflix could also surprise to the upside.
Tuesday brings earnings from
. Cramer said he likes DuPont and United Tech but is worried that Panera may disappoint.
Then, on Wednesday, it's
, Cramer's favorite aerospace play, and
, a stock he said may have limited downside if investors use deep-in-the-money call options.
Next, on Thursday, it's
at bat. Cramer said Ford, a stock he owns for his charitable trust,
Action Alerts PLUS, should reveal that Europe is performing better, but investors must wait to hear Amazon's conference call before they buy any of this wild trader. Likewise with 3M, a stock that trades down, even on great numbers, giving investors an opportunity to buy.
Finally, on Friday,
reports. Cramer told viewers to sit and listen to this call because rival
may be having a strong quarter.
For "Speculation Friday," Cramer looked into a fairly new cloud computing company, one with great growth but also a few caveats. That stock,
, provides large enterprises with cloud-based IT services and currently has 1,778 customers in a host of industries.
ServiceNow came public just 16 months ago, popping 37% on its first day and rising another 110% in the months that followed. The company has $410 million in revenue but very little churn, meaning that its customers stick with the company once they sign on. With a $12 billion addressable market, it's easy to see why ServiceNow has been a hot commodity thus far.
But then there are the caveats, said Cramer -- things like the fact that ServiceNow is not yet profitable and currently trades at 15 times sales, a very high multiple.
However, even with the high price tag, Cramer said the markets are clearly enamored by all things cloud computing, which is why he'd wait until the company reports next Wednesday and use any weakness in the stock as an entry point to buy into a stock that very rarely takes a breather.
Back From the Dead
It doesn't happen often, but companies can bring themselves back from the grave, Cramer reminded viewers. That's the case with everyone's favorite Internet punchline,
, once the king of dial-up access, but now a largely unnoticed turnaround story.
Cramer said CEO Tim Armstrong has been succeeding by providing users with relevant content, then matching that content to targeted advertising. Acquisitions like
have given the company a notable house of brands in which advertisers are becoming increasingly interested. That's helped AOL's paid search ads grow by 8% in its most recent quarter.
AOL is also cracking down on expenses, said Cramer, and has recently made a painful but necessary restructuring of its local news service,
. That restructuring is exactly what the company needed, said Cramer, yet few on Wall Street took notice.
More important, AOL has been aggressively buying back its own shares. The company has already reduced its share count from 106 million to 77 million in just a few months time. That's a 27% reduction. Cramer said this aggressive buying and a return to growth makes AOL worth a lot more than its current multiple of 18.3 times next year's earnings.
In the Lightning Round, Cramer was bullish on
US Airways Group
Ruth's Chris Steakhouse
Cramer was bearish on
Advanced Micro Devices
Executive Decision: Daniel Starks
In the "Executive Decision" segment, Cramer spoke with Daniel Starks, chairman, president and CEO of
St. Jude Medical
, a stock that's up 56% for the year despite turning in a mixed quarter with a penny-a-share earnings beat and in-line guidance.
Starks said the St. Jude story is one of transitioning from yesterday's medical technology to today's. He said St. Jude's latest devices include disruptive technology that can lower the global health care budget while providing better care to patients and profits for shareholders.
Among the company's most promising devices are Nanostim miniature pacemakers and CardioMEMS wireless monitoring technology. Starks said the Nanostim is only a fraction of the size of a traditional pacemaker and has no leads, meaning the procedure to install it is far less invasive yet the device still offers all of the same functionality and longevity.
Starks said the device will not likely make it into the U.S.market in 2014, but he said St. Jude and the Food and Drug Administration are working towards getting the product approved as soon as possible.
Cramer said winning technology like what St. Jude has to offer will make all the difference, even if it isn't immediately available in the U.S.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer asked and answered the question of how big-cap growth names such as
Chipotle Mexican Grill
can have such monster rallies in a single day. The answer is simple: because they fall that much as well.
Cramer said both Google and Chipotle are high-risk, high-reward names that Wall Street either loves or loathes at any given time. Just a year ago, Google's stock was plummeting, but now the company has accelerating revenue growth, the Holy Grail of Wall Street. Chipotle also had a monster plummet in July 2012 but since then is seeing positive same-store sales and is ramping up its ShopHouse Asian Kitchen concept.
Cramer said Google can be bought, even up here, but investors should wait for a pullback before investing in Chipotle, which has the higher multiple.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in F.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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