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Investors are back to worrying about Britain leaving the European Union, Jim Cramer told his Mad Money viewers on Friday. However, he doesn't think the situation will lead to the chaos many seem to be talking about.
That's where this week's game plan comes into play.
On Monday, markets will likely be trading based on the latest "Brexit" polls. If Britain does decide to leave, Cramer is attracted to high-quality stocks including Action Alerts PLUS holding American Electric Power (AEP - Get Report) , AT&T (T - Get Report) , Bristol-Myers Squibb (BMY - Get Report) and General Mills (GIS - Get Report) . He's avoiding financial stocks "like the plague."
Tuesday brings earnings from Lennar (LEN - Get Report) and CarMax (KMX - Get Report) , which will give investors a read on the housing and auto markets. Adobe (ADBE - Get Report) will also report earnings, and Cramer likes the stock and expects a good results. FedEx (FDX - Get Report) reported a blowout quarter last time it released earnings, and while it's doing well, Cramer said it will be difficult to top it again.
On Tuesday and Wednesday, Federal Reserve Chair Janet Yellen will give her semi-annual testimony to committees in the Senate and House. Investors will want to make sure nothing at the Fed has changed from its most recent stance. Investors will also get oil inventory numbers on Wednesday. A lower-than-expected result will likely send oil toward $50 per barrel, while a high result will send it toward $45.
Also on Wednesday will be earnings from Bed Bath & Beyond (BBBY - Get Report) . Cramer is looking for more on the company's recent acquisition of One Kings Lane. Red Hat (RHT) also reports earnings. Although it's a good company, it's often misunderstood, so he suggested waiting to hear the conference call before deciding whether to buy the stock.
Accenture (ACN - Get Report) will report earnings on Thursday. This is a great company, Cramer said, suggesting investors buy some ahead of the quarter and the buy some more if a pro-Brexit outcome occurs that day.
Rising Water Utilities
Investors might not have noticed the "stealth bull market in the water utilities," Cramer said. Led by the 35% gain in Aqua America (WTR - Get Report) and 58% gain in American Water Works (AWK - Get Report) over the past year, these stocks have vastly outperformed the S&P 500 over the past 12 months and five years, he noted.
The water and waste water industries have becoming a stream of steadily rising sales and earnings, which has allowed for consistent dividend increases for both companies. The only problem is the stocks' recent rally, which has driven down the dividend yields and raised the valuation.
However, both stocks are benefiting from the massive water and waste water infrastructure upgrades that have been, and are still, needed in the U.S. The Environmental Protection Agency recently forecast the country's water infrastructure would need $400 billion in investments over the next 20 years, while the the American Society of Civil Engineers forecasts $300 billion will be needed for waste water infrastructure.
Most of the companies' business comes from regulated water, with just a small amount coming from the more volatile, unregulated water business that each company is shedding, Cramer explained. Because each company is consolidating it's giving them scale and pricing power, which is good for earnings.
Know Your IPO
On the show's "Know Your IPO" segment, Cramer took a closer look at SiteOne Landscape Supply (SITE - Get Report) . The company went public a little more than one month ago, and the stock has actually traded pretty well given the overall stock market. Shares shot up from an IPO price of $21 to nearly $30 within its first few days. Currently, the stock is near $27.
The company is the country's largest and only national wholesale supplier of landscape supplies. Operating 477 branches in 44 states, it's got a commanding grip on the market and is four times largest than its next largest competitor.
OneSite was created by Deere (DE - Get Report) , but a majority stake was purchase by a private equity firm, which still owns 45% of the company. This isn't a great situation because as the stock increases the firm will look to reduce its holdings.
The company is levered to housing, so as household formation, home sales and construction continue to rise, OneSite benefits. Conversely, if the economy takes a hit or housing slows down, this stock most likely will too, he explained.
The company raised roughly $200 million in its IPO, part of which will go to paying down debt. Investors who are intrigued by this stock can consider buying a small position ahead of earnings this week and waiting for more clarity before their next move, Cramer said. Besides, a Brexit could bring this stock down to even more attractive levels, he added.
Executive Decision: Tom Farrell
Almost 12% of the company's total workforce and roughly 20% of new hires since 2011 are military vets. It's important for the country that these vets have somewhere to go, Farrell explained. Plus, they fit the culture of the company well.
As for the business, Farrell said it's imperative to look beyond this quarter and this year when leading this company. Management needs to be focused years down the road, which is one reason why Dominion bought Questar for $4.4 billion earlier this year. He expects the deal to close before the end of the year and it will be immediately accretive to earnings. It gives the company needed geographical diversity and the potential for future growth, he told Cramer.
As for different types of plants, Farrell said he does not think any more coal plants will be built in the United States. Nuclear plants depend on the country's clean power plans. Over the next several decades though, it will be difficult for the U.S. to meet its carbon goals without more nuclear power, but that could be a decade or more away, he said.
Cramer likes the stock and its 3.8% dividend and said this stock should be on investors' radar if the broader market pulls back.
On Friday's "Mad Money Lightning Round," Jim Cramer was bullish on GW Pharma (GWPH) , NovoCure (NVCR - Get Report) , Edwards Lifesciences (EW - Get Report) , American Tower (AMT - Get Report) , Ventas (VTR - Get Report) , Patrick Industries (PATK - Get Report) and Nordic American Tankers (NAT - Get Report) .
No Huddle Offense
On the show's "No Huddle Offense" segment, Cramer took a closer look at Viacom (VIAB - Get Report) . There's a "total blackout" at the company and it's near impossible to tell what's going on, he said. Investors don't have clarity on who's running the company or who's on the board now.
Making matters worse, the company provided much lower-than-expected guidance for next quarter. Viacom's movie slate is expected to be pretty weak moving forward, with the only big hit likely to be Star Trek Beyond.
But even that's likely to disappoint domestically, according to TheStreet's Buster Coen. Plus, the Star Trek franchise doesn't have that strong of an international following. The company's TV programming isn't eliciting strong demand either.
While it's possible for the company to be taken over, investors aren't sure if it will happen or if there will be a management shakeup instead. If there's a shakeup, who knows how long it could take, Cramer said.
Cramer is not blessing Viacom as a stock to own.
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