Curious about what you should be watching ahead of an earnings report?
Jim Cramer has some investing education for investors looking to invest in companies that are about to report earnings.
"Okay, well you need, if they have the history of beating then they can do it. That's like a Honeywell (HON) - Get Honeywell International Inc. (HON) Report situation. But secular growth, you know, when you've got a kind of story where that means there is cyclical growth, which is that it'd be up and down up now. Like Dow Chemical undefined was smarter than their secular growth," said Cramer. "And then you know, you just kind of, when I look at the ones that continue to beat, I want to see, there's a couple of things, not just three."
"I want to see that they have a history of under promising. And the reason I mentioned that is because yesterday I had Zebra Technologies (ZBRA) - Get Zebra Technologies (ZBRA) Report on Mad Money and he's been under promising so that he can over deliver. Okay. And then when you have an Apple situation, I look at when they, because they clearly beat, they are a company that has figured out how to buy back enough stock that they'll beat no matter what," Cramer continued.