Cramer's 'Mad Money' Recap: Game Plan for Earnings Parade (Final)

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NEW YORK ( TheStreet) -- Earnings are likely to be terrific next week, Jim Cramer advised his "Mad Money" TV show viewers Friday. But even if they are, Cramer still told viewers to use caution and only buy after they've had time to digest the conference calls. He reminded them that the headlines are often wrong when it comes to corporate earnings, and the devil is always in the details.

That's why on Monday, Cramer said he'll be listening to the conference call of Citigroup ( C) to see if that beleaguered bank has anything to say in the way of a dividend, a buyback or anything positive for shareholders. If not, look for the entire banking sector to be weak, he said.

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Tuesday brings earnings from Goldman Sachs ( GS), Johnson & Johnson ( JNJ), Coca-Cola ( KO), IBM ( IBM) and Intel ( INTC). Cramer was bearish on Goldman and Johnson & Johnson, but expected Coke, IBM and Intel to all have bullish things to say.

For Wednesday, Cramer said to buy Qualcomm ( QCOM) on weakness and also American Express ( AXP), a stock he owns for his charitable trust Action Alerts PLUS. American Express always trades lower after earnings, he noted, which is a great time to buy.

Then on Thursday, it's time for Morgan Stanley ( MS), Bank of America ( BAC) and Microsoft ( MSFT). Cramer said he'd be a buyer of Morgan Stanley if the Spanish bond auction takes the market down. He wasn't excited about Bank of America, but did express interest in Microsoft on a pullback.

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Finally for Friday, Cramer will be listening to General Electric ( GE), Under Armour ( UA), Honeywell ( HON), Kimberly-Clark ( KMB) and Schlumberger ( SLB). Cramer was bullish on all these names, except for Schlumberger, which he told investors to just listen to for the latest read on oil and natural gas prices.

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Sam Thomas, chairman, president and CEO of Chart Industries ( GTLS), a gas-to-liquids equipment maker whose shares are just off their 52-week high.

Thomas said that when it comes to natural gas processing and liquification, "no one is as devoted to it as we are." He said that Chart Industries is involved in just about every aspect of the industry and that liquified natural gas is a global opportunity.

Here in the U.S., where natural gas is cheap and abundant, Thomas said that he expects to see export terminals being completed, as gas is simply worth more outside of the U.S. In China, the company is seeing its manufacturing operations increase between 40% and 50% a year.

Chart is also involved in the development of natural gas truck engines as well as natural gas fueling stations. He said in the past six months, momentum has been building for natural gas surface vehicles, which has made Chart's biggest problem keeping up with growing demand.

Natural gas is a viable fuel, said Thomas, it's domestic, it creates jobs and provides energy security. That's why Chart is currently in need of skilled engineers, to help usher in the new era of energy in America.

Cramer remained bullish on the use of natural gas and on Chart.

Growth Stocks

Closing out his week-long series of world-class growth stocks, Cramer highlighted yoga-inspired apparel maker Lululemon Athletica ( LULU), a stock that's just three points off its 52-week high.

Cramer called Lulu a junior growth company, meaning it's still in the early phases of its expansion. The company is seeing 26% increases in its same-store sales and has a huge runway to expand its store count, as well as potential in its Ivivva children's concept, and more.

Lulu's end markets are huge, said Cramer, especially as it expands into children's and men's apparel and more mainstream sports like biking. The company is highly competitive, with loyal fans, and it's always inventing new fabrics and products. Does Lulu have international potential? Absolutely.

Turning to the financials, Cramer said that Lulu isn't likely to offer a dividend anytime soon, but that's OK given its growth. The balance sheet is pristine, with no debt, and shares trade at just 35 times next year's earnings, with a 30% growth rate. Cramer praised management's execution thus far in its growth, and noted that growth is not dependent on the macro economy or held hostage by rising input costs.


In the "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Howard Hughes ( HHC) is too expensive at 166 times earnings. Cramer prefers Federal Realty Trust ( FRT). Cramer was also not a fan of Vocus ( VOCS), a cloud software provider that's too speculative.

When asked about Ubiquiti Networks ( UBNT), a wireless equipment provider, Cramer said that this stock has run too much and needs to cool before he'd be a buyer.

Mad Tweets

In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer. Cramer said he still likes Nordic American Tanker ( NAT), but fears that railroad CSX ( CSX) has too much coal exposure.

When asked about Western Digital ( WDC), Cramer said there is nothing proprietary at the company and he prefers Intel ( INTC).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer outlined all of the bear arguments for why the markets are headed lower, and why he's not worried about any of them.

Cramer said the weak Chinese GDP number was exactly what he wanted to see, as it means that country will have to engineer the soft landing that everyone wants. In Europe, Cramer said the Europeans are finally dealing with their crises as they arise and this time will be no different. Turning to the banks, Cramer said he's not worried about earnings, he wants to see revenues, which are finally on the uptick.

Finally, Cramer said he too was concerned over Google's ( GOOG) disappointing results, but then he remembered that the stock trades for just 12.5 times earnings, even less if you back out the company's cash on hand.

Add it all up and Cramer said the markets were probably ripe for a little profit taking, but it's certainly nothing to panic about.

Lightning Round

In the Lightning Round, Cramer was bullish on International Paper ( IP), Marriott International ( MAR), Wyndham Worldwide ( WYN) and Starwood Hotels & Resorts ( HOT).

Cramer was bearish on Gulfport Energy ( GPOR), Telecom Argentina SA ( TEO) and Foster Wheeler ( FWLT).

Closing Comments

In his closing comments, Cramer said that he's still bullish on JPMorgan Chase ( JPM), an Action Alerts PLUS holding, and would be a monster buyer if the stock falls below $40 a share. He was also bullish on Wells Fargo ( WFC).

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer's Action Alerts PLUS was long AXP, JPM, IP.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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