Jim Cramer has been focused on earnings season and he's taking a close look at UPS.
"What defines a winner in this earnings season? Let's take United Parcel (UPS) , with a stock that vaulted 19 points on the strength of what looked like an amazing quarter, but that's not what drove the stock higher at all. Yes, the gross margins were amazing and the pricing per package was unbelievably good, but what you needed to know about UPS is that the CEO, Carol Tome, has repeatedly been dismissed as someone who couldn't tame the beast, the unwieldy package delivery company. That's even despite that she had been on the board since 2003 and had seen what had gone wrong, even as she was the dominant CFO of her time, when she ran the finances of Home Depot (HD)," wrote Jim Cramer in his Real Money column Tuesday night.
"Tome came on "Mad Money" after the last UPS report, which was widely panned, and said that was it, from now on she would beat all her targets. She did so. For many companies and their stocks, beating targets would mean little to nothing. Ask the shareholders of Procter & Gamble (PG) or Coca-Cola (KO) , where the numbers were better and nothing happened," Cramer wrote.
He continued, "The lesson here? Go after stocks where you believe in the CEO, when you know others don't -- you need both pieces -- and then place your bets."
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