Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- So far, this earnings season has been a good one, Jim Cramer said on Mad Money Friday. That's why Cramer expects next week will be more of the same, with individual corporate earnings taking center stage.
On Monday, Cramer said he'll be watching the earnings from Merck (MRK - Get Report) , a stock that could lift the old-line drug makers. Also on Cramer's radar will be Twitter (TWTR - Get Report) , a stock he owns for his charitable trust, Action Alerts PLUS, and Buffalo Wild Wings (BWLD) , two long-term faves.
Tuesday brings a host of earnings from DuPont (DD - Get Report) , Parker-Hannifin (PH - Get Report) , Facebook (FB - Get Report) , another Action Alerts PLUS name, Gilead Sciences (GILD - Get Report) , Panera Bread (PNRA) and McKesson (MCK - Get Report) . Cramer is bullish on DuPont, Parker-Hannifin, Gilead and McKesson but advised trimming positions in Facebook and waiting until after earnings to buy into Panera.
Wednesday, all eyes will be on the Federal Reserve, Cramer said, but he'll be watching Wellpoint (WLP) , a big beneficiary of Obamacare.
Thursday earnings include Starbucks (SBUX - Get Report) and GoPro (GPRO - Get Report) . Cramer said he'd buy into Starbucks ahead of earnings but admitted that GoPro, while a great long-term story, is pricey at current levels.
Sell Palo Alto Networks
Sometimes when you have a big winner, it's time to declare victory and go home, Cramer told viewers. That's the case with Palo Alto Networks (PANW - Get Report) , a stock that Cramer said it's now time to sell, sell, sell.
Cramer had been a backer of Palo Alto ever since its initial public offering, a full 158% ago. While he still feels that cybersecurity is a big business and Palo Alto is the best-of-breed player in that business, at $108 a share the stock has simply gotten too pricey.
Palo Alto now trades at 100 times earnings, and Cramer reminded viewers they should never pay more than twice a company's growth rate, which in this case is 42%.
But the big yellow flag for Cramer was a surge in insider selling, to the tune of $450 million. Insiders sell for a variety of reasons, Cramer said, but $450 million is a lot for any company.
Palo Alto also issued $500 million of convertible bonds back in June at a strike price of $110 share. With the stock now just two points from that level, Cramer said it's very likely that many of those shares will convert to stock, diluting current shareholders.
Add to that the fact that there are no analysts with a sell recommendation on Palo Alto and only four with holds, so the stock is now priced for perfection, Cramer concluded -- which is why it's time to ring the register before it hits $110.
Profit With PAY
When Apple (APPL) went live with its Apple Pay service this past Monday, it kicked off a revolution in the way Americans pay for goods and services, Cramer told viewers. The best way to profit from this revolution, he said, will be with VeriFone (PAY) .
While Apple Pay may be getting all the headlines, Cramer said the real push behind the payment revolution is an October 2015 deadline, set by the major payment processors, to require retailers to accept both NFC contactless payments and EMV cards with built-in chips like those popular overseas. The penalty for not accepting these 21st century payments will put retailers on the hook for any fraud that occurs after the deadline.
As an additional incentive, Cramer noted there will likely be 70 million Apple Pay-enabled iPhones sold in the next two years, nearly twice the number of American Express (AXP - Get Report) cards in the U.S.
While only 30% of all U.S. terminals are currently EMV-enabled, that number should jump to 70% by 2016. With VeriFone the market leader, Cramer said this company should grow like a weed.
Cramer said he expects shares to reach $42.50 a share, or a 24% gain from current levels, but he would not be surprised to see earnings accelerate, taking shares to $48 for a 40% gain.
Executive Decision: Angel Martinez
For his "Executive Decision" segment, Cramer spoke with Angel Martinez, chairman, president and CEO of Deckers Brands (DECK) , which delivered a 14-cents-a-share earnings beat on a 24% uptick in sales, yet shares fell 7.4% on an otherwise up day on Wall Street.
Martinez said he's perplexed by the market's reaction to a very strong quarter. He said the company's guidance remains for 15% revenue growth. Despite some of the media reports, that's not a downgrade from earlier forecasts.
Martinez continued that Deckers has its most diverse product line ever and all of the newer items have been very well received. While the company was very dependent on the classics three or four years ago, that's not the case today.
Cramer said it's very rare to get a discount on a quality company going into its prime selling season, but that's exactly what just happened.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said if the market is going to take a hit with every Ebola diagnosis, be prepared for lots more dips.
Cramer said as long as there is no quarantine for health care workers returning from affected areas, or at least a registry of those returning, there will likely be more people contracting Ebola here in the U.S.
It's totally possible that we will have an effective vaccine for Ebola in 2015, Cramer continued, but research takes time and there will be no magic bullet anytime soon. That means investors must accept that we live in a world where Ebola is out there and it may, occasionally, interrupt the status quo.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott RuttFollow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC