'Fast Money' Recap: An Important Week for Earnings

NEW YORK (TheStreet) -- The S&P 500 slid 0.23% ahead of an important week of earnings. 

On CNBC's "Fast Money" TV show, the trading panel looked at Chipotle Mexican Grill's (CMG) revenue and earnings beat. 

"Unbelievable quarter," said Guy Adami, managing director of stockmonster.com. However, despite the strong results, he is not a buyer of Chipotle at current levels. Instead, he prefers Jack In The Box (JACK). 

Karen Finerman, president of Metropolitan Capital Advisors, said Chipotle appears to be taking market share from its competitors. She is surprised that the stock only has a short interest of roughly 5%. 

Tim Seymour, managing partner of Triogem Asset Management, said the company has one of the most loyal customer bases. However, Chipotle does not seem capable to continuing growing this rapidly, he argued, and he is not a buyer based on valuation. He likes Starbucks (SBUX).  

Steve Grasso, director of institutional sales at Stuart Frankel, said shares of Chipotle seemed poised to move higher. The higher menu prices are still being undervalued by investors, he suggested.

Johnson & Johnson (JNJ) announced a new $5 billion share repurchase plan. Seymour said this is good news as the company has a ton of cash, a strong balance sheet and a healthy international business. 

Michael Pachter, managing director at Wedbush Securities, has an underperform rating on shares of Netflix (NFLX) with a $215 price target. He said Netflix continues to grow its subscriber base and offer better content. However, the company has generated negative cash flow for the past nine quarters. 

Pachter argued that eventually the negative cash flow would start to weigh on Netflix's income, which will weigh down its earnings per share. When that happens, the share price is likely to decline precipitously, he concluded. 

Seymour said Netflix is imposing a secular change in how people watch video. However, its valuation is unattractive and for that reason he is not a buyer. Finerman agreed she is not a buyer based on valuation.  Grasso argued that shares of Netflix seem poised to move higher.

Brian Goldner, president and CEO of Hasbro (HAS), was a guest on the show. The company beat on bottom-line estimates, despite missing top-line expectations. He said timing is an important factor in the business headed into the second half of 2014. He added Hasbro is putting more focus on customization, which can be done with board games and 3-D printing of select toys. 

Adami said investors can buy Hasbro at $50. Seymour said investors could buy shares of Hasbro soon but should use a stop-loss near $48 or $49.

Dennis Gartman, editor and publisher of The Gartman Letter, said U.S. bonds and equities seem likely to continue moving higher. He is also a seller of crude oil and wheat when the commodities rally. He is long gold in euro currency. 

Seymour said he is not yet a buyer of Russian equities such as Yandex (YNDX) or Qiwi (QIWI). 

CBS Outdoor Americas (CBSO) climbed 4% and was the first stock on the show's "Pops & Drops" segment. Finerman said CBS Outdoor's purchase of Van Wagner Communications' outdoor advertising assets was "a good deal." 

King Digital (KING) jumped 3%. Adami said shares seem likely to move higher. 

Baidu (BIDU) popped 3%. Seymour said the company is attractive based on valuation. 

BB&T Corp. (BBT) dropped 4%. Grasso said he is a buyer over the long-term, but suggested that investors let the stock settle down over the next few days.

Colin Gillis, senior technology analyst at BGC Financial, has a hold rating on shares of Apple (AAPL) with an $87 price target. He argued that a lot good news, especially for the yet-to-be-announced iWatch, is already baked into the stock price. He is cautious headed into Apple's earnings on Tuesday after the close because iPhone growth appears to be slowing and the services segment has been weak. He is looking for a pullback in the stock price. 

Adami reasoned that shares of Apple could spike on the earnings, before selling off as investors and analysts look through the "fine print" of the report. Finerman is confident in Apple over the long term and she is long. Seymour is, too. 

Adami said Freeport-McMoRan (FCX) could have upside following its earnings release on Wednesday. Seymour agreed and is long the stock. 

When asked what stock to buy for content, Grasso said to buy Disney (DIS), which he called a "consistent earner."

Finerman called United Rentals (URI) "fairly to fully valued." She is not a buyer. 

Seymour said Coca-Cola (KO) will not post robust revenue growth. However, the stock has good value, a solid dividend and a "great global brand." 

For their final trades, Grasso is buying Twitter (TWTR) and Seymour is taking some profits in Baidu (BIDU). Finerman is a buyer of Cumulus Media (CMLS) and Adami said to buy Schlumberger (SLB). 

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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