CNBC’s Jim Cramer on Thursday presented investors with a roster of health care stocks that should be on their shopping lists for next year.
“Wall Street likes profitable companies with consistent results, nice dividends and reasonably valued stocks,” he said, adding, “The biggest [health care] winners were boring, consistent operators with cheap stocks.”
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Cramer said that health care stocks have stayed relatively steady this year because they tend to be recession-resistant stocks — in other words, they perform well regardless of the state of the economy.
Here are his picks:
Danaher
Cramer predicted that the company will have a banner year in 2023 and called it “one of the best-run companies in any industry.”
Pfizer
Praising the vaccine maker’s acquisition of Arena Pharmaceuticals, Biohaven and Global Blood Therapeutics, he said that Pfizer stock is a steal.
UnitedHealth Group
Cramer said that he likes the “best-of-breed” managed health care stock.
Humana
He called the stock a “great turnaround story.”
Edwards Lifesciences
Cramer says he likes the stock because the company’s underlying business has been strong, despite the stock being down over 43% for the year.
Disclaimer; Cramer’s Charitable Trust owns shares of Danaher and Humana.
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CNBC’s Jim Cramer on Friday said that next week’s jam-packed week of earnings and economic data releases could result in good news for the Federal Reserve’s battle against inflation.
“This market’s trading like next week, we’ll see some real signs that the Fed’s winning its war on inflation, and they can, therefore, ease up on the rate hikes going forward… I wouldn’t be at all surprised if the market got it exactly right,” he said.
Cramer named two important economic events he’s watching next week: the FOMC’s next meeting, which is expected to conclude with a 0.75 percentage point interest rate increase, and the nonfarm payroll report.
“You can’t get a reduction in wages until you see many people losing their jobs, and that’s what the Fed needs to see,” he said.
Cramer also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.
Tuesday: Eli Lilly, Uber, Devon Energy, AMD
Eli Lilly
Q3 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
Projected EPS: $1.91
Projected revenue: $6.89 billion
The company has the chance to shine now that health care stocks are some of the new market leaders, he said.
Uber
Q3 2022 earnings release at 7:05 a.m. ET; conference call at 8 a.m. ET
Projected loss: loss of 18 cents per share
Projected revenue: $8.11 billion
Cramer said that if the company reports that there are plenty of drivers but customers can’t afford rides, that’ll be great news for the Federal Reserve.
Devon Energy
Q3 2022 earnings release at 4:05 p.m. ET; conference call on Wednesday at 11 a.m. ET
Projected EPS: $2.12
Projected revenue: $4.16 billion
While the company is doing well, investors shouldn’t buy shares of oil companies when the economy is weakening, he warned.
AMD
Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
Projected EPS: 70 cents
Projected revenue: $5.69 billion
Cramer said he’s interested in knowing if AMD is losing market share to Intel.
Wednesday: Humana, CVS, Qualcomm
Humana
Q3 2022 earnings release at 6:30 a.m. ET; conference call at 9 a.m. ET
Projected EPS: $6.27
Projected revenue: $22.82 billion
CVS
Q3 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
Projected EPS: $2
Projected revenue: $76.74 billion
“I fear that CVS is considered a Covid play. Humana is a post-Covid darling,” Cramer said.
Qualcomm
Q4 2022 earnings release at 4 p.m. ET; conference call at 4:45 p.m. ET
Projected EPS: $3.14
Projected revenue: $11.33 billion
He said he wouldn’t be surprised if the stock went up even on a guidance cut, given how much shares of Qualcomm have declined this year.
Thursday: Starbucks, PayPal, DoorDash
Starbucks
Q4 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
Projected EPS: 72 cents
Projected revenue: $8.32 billion
He said he expects the company to report a solid quarter.
PayPal
Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5:30 p.m. ET
Projected EPS: 96 cents
Projected revenue: $6.81 billion
“I think PayPal has a chance to regroup here, as their flagging days have probably ended,” Cramer said.
DoorDash
Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
Projected loss: loss of 59 cents per share
Projected revenue: $1.63 billion
He said that DoorDash is “inviting skepticism” since people aren’t getting their food delivered as frequently as they did during the height of the Covid pandemic.
Disclaimer: Cramer’s Charitable Trust owns shares of Eli Lilly, Devon Energy, AMD, Humana, Qualcomm and Starbucks.
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CNBC’s Jim Cramer on Friday looked ahead to next week’s of earnings reports, detailing for investors his key market events to keep an eye on.
The “Mad Money” host’s comments came after all three major U.S. equity indexes closed at record highs Friday, despite disappointing quarterly results a day earlier from market heavyweights Amazon and Apple.
All revenue and per-share earnings projections are based on FactSet estimates:
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Monday: ON Semiconductor, NXP Semiconductors, Diamondback Energy and Clorox
On Semiconductor
Q3 results before the bell; conference call at 9 a.m. ET Monday
Projected EPS: 74 cents
Projected sales: $1.7 billion
NXP Semiconductors
Q3 results; conference call at 8 a.m. ET Tuesday
Projected EPS: $2.75
Projected sales: $ 2.85 billion
Both companies’ earnings will offer “a read on one of the biggest stories in this market, and that’s the semiconductor shortage,” Cramer said. “They do a lot of auto semis, and they’ve got exposure to many of the others areas where there are the biggest bottlenecks.”
Diamondback Energy
Q3 results after the close; conference call at 9 a.m. ET Tuesday
Projected EPS: $2.79
Projected revenue: $1.54 billion
Clorox
Q1 2022 results after the bell; conference call at 5:30 p.m. ET Monday
Projected EPS: $1.03
Projected revenue: $1.7 billion
“I hope for the best, but I am preparing for the worst,” Cramer said, noting the household products maker may not be able to pass through all of its higher commodity costs, possibly hurting margins.
Q1 2022 results before the open; conference call at 9:30 a.m. ET Tuesday
Projected EPS: $1.70
Projected sales: $4.25 billion
DuPont
Q3 results before the bell; conference call at 8 a.m. ET Tuesday
Projected EPS: $1.12
Projected sales: $4.16 billion
Cramer’s charitable trust owns both Estee Lauder and DuPont. “I don’t expect them to have superb quarters. Fortunately, the expectations are low, though, so it won’t take much to produce an upside surprise that moves the stocks up,” he said.
Pfizer
Q3 results before the open; conference call at 10 a.m. ET
Projected EPS: $1.08
Projected revenue: $22.58 billion
“Unlike Moderna, Pfizer’s a lot more complicated than just a Covid vaccine story. See, they’re facing what’s known as a patent cliff next year,” Cramer said. “We need to know if the boosters, which cost a lot of money, … are going to cover the patent cliff.”
BP
Q3 results before the bell; conference call at 5 a.m. ET Tuesday
Projected EPS: £ 10.83
Projected revenue: £29.06 billion
Devon Energy
Q3 results after the close; conference call at 11 a.m. ET Wednesday
Projected EPS: 93 cents
Projected sales: $3.23 billion
T-Mobile
Q3 results after the close; conference call at 4:30 p.m. ET Tuesday
Projected EPS: 48 cents
Projected revenue: $20.22 billion
“The [telecommunications] industry has got a clear pecking order: T-Mobile for growth, Verizon for the dividend, and AT&T for nothing. Let’s see how many subscribers T-Mobile has been able to steal from its rivals when they report,” Cramer sad.
Zillow
Q3 after the close; conference call at 5 a.m. ET Tuesday
Projected EPS: 16 cents
Projected revenue: $2 billion
“They had to put the real estate flipping business on pause because the economics turned out against them, but what does that really mean? We’re going to find out on Tuesday,” Cramer said.
Q3 results before the bell; conference call at 8 a.m. ET Wednesday
Projected EPS: $1.79
Projected revenue: $70.5 billion
“This stock’s been on a roll, bolstered by Covid vaccines and superior execution, at least compared to arch-rival Walgreens. I don’t know if it can continue now that the pandemic’s winding down, but remember that CVS also has a huge health insurance business,” Cramer said.
Humana
Q3 results before the open; conference call at 9 a.m. ET Wednesday
Projected EPS: $4.66
Projected revenue: $20.9 billion
Cramer said he expects the health insurer’s numbers to be even better than rivals Centene and UnitedHealth Group.
Marriott International
Q3 results before the bell; conference call at 8:30 a.m. ET Wednesday
Projected EPS: 99 cents
Projected sales: $3.71 billion
Wynn Resorts
Q3 results after the close
Projected EPS: Loss of $1.36
Projected revenue: $943 million
Cramer said he expects Marriott International to have a better story to tell about the hospitality recovery compared to Wynn Resorts, which his charitable trust owns. He said that’s because of Wynn Resorts’ exposure to the gaming hub of Macau.
Qualcomm
Q4 results after the close; conference call at 4:45 p.m. ET Wednesday
Projected EPS: $2.26
Projected revenue: $8.85 billion
“They’ll give us more insight into the cellphone market, but I bet that can’t be that positive, either,” Cramer said, alluding to the chip crunch.
Etsy
Q3 results after the close; conference call at 5 p.m. ET Wednesday
Projected EPS: 55 cents
Projected revenue: $519 million
“I bet CEO Josh Silverman will have a lot of good to say about his e-commerce platform for handicrafts—should make a nice contrast to Amazon’s disappointing quarter,” Cramer said.
Thursday: Uber, Skyworks Solutions, Peloton and Square
Uber
Q3 results after the close; conference call 5 p.m. ET Thursday
Projected EPS: Loss of 34 cents
Projected revenue: $4.41 billion
“I think Uber can deliver, but the stock’s been kept down by persistent sellers, so even a good quarter might not matter, at least not until these weak hands finish dumping their shares,” Cramer said.
Skyworks Solutions
Q4 results after the bell; conference call at 4:30 p.m. ET Thursday
Projected EPS: $2.55
Projected sales: $1.3 billion
“Maybe they give us some insight into when the chip shortage nightmare can come to an end,” Cramer said.
Peloton
Q1 2022 results after the close; conference call at 5 p.m. ET Thursday
Projected EPS: Loss of $1.10
Projected sales: $809 million
The fitness equipment maker was a major pandemic winner, but the stock has struggled to gain traction since investors shifted toward reopening plays, Cramer said. “I think they’ve got their work cut out for them.”
Square
Q3 results after the close; conference call at 5 p.m. ET Thursday
Projected EPS: 37 cents
Projected revenue: $4.38 billion
“I’m betting their mojo will be absent for now, mojo being a technical term on Wall Street for the massive love a stock gets after a monster beat and raise quarter,” Cramer said.
Friday: Enbridge and October nonfarm payrolls
Enbridge
Q3 results before the bell; conference call at 9 a.m. ET Friday
Projected EPS: 57 cents
Projected revenue: $9.62 billion
Cramer said he likes the company’s dividend payment. “Plus, we have a real shortage of energy infrastructure, so I bet business is good,” Cramer said.
The Labor Department’s report on nonfarm payrolls for the month of October is out at 8:30 a.m. Friday, but Cramer cautioned the recent monthly reports have been “all over the map right now,” making their appearance “seem deceiving.”
U.S. stock futures rose slightly in overnight trading on Tuesday, after a strong market rally as the Reddit trading mania continued to unwind.
Dow futures rose 60 points. S&P 500 futures gained 0.4% and Nasdaq 100 futures rose 0.4%.
Strong earnings from Amazon and Alphabet helped futures. Amazon reported earnings nearly double Wall Street estimates; however, the stock move was tempered by news that Jeff Bezos would step down as CEO.
Shares of Alphabet gained 6% in after hours trading after the technology giant reported 23% revenue growth and topped estimates for earnings.
Stocks rallied for the second day on Tuesday, with the Dow Jones Industrial Average gaining more than 475 points for its best day since November. Investors returned to buying equities after the Reddit-fueled action that shook markets last week. The Dow is up 2.35% this week.
The S&P 500 climbed 1.4% and the Nasdaq Composite jumped more than 1.5%.
After a meteoric, albeit seemingly synthetic rise in GameStop last week caused by a short squeeze, shares have cratered more than 70% this week. Other Reddit trades have also come back down to Earth amid trading restrictions from major brokers.
“The best way to describe today’s stock market action is ‘reversing the Reddit revolution,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “What went up with GameStop, came down with GameStop.”
“From mid-day Jan. 28 to the end of Jan. 29, cyclicals including technology got pounded while defensive sectors outpaced. Over the last two days, and particularly today, this was reversed,” added Paulsen.
Investors are also monitoring negotiations in Washington surrounding another stimulus package. President Joe Biden met with the 10 Republican senators on Monday to discuss an alternative, smaller aid proposal to his $1.9 trillion package.
Earnings season continues on Wednesday with AbbVie, Biogen, Boston Scientific, GlaxoSmithKline and Humana reporting before the opening bell.
Chipmaker Qualcomm, eBay, PayPal and Yum China report earnings after the market closes on Wednesday.
Private payroll data from January is released at 8:15 a.m. on Wednesday from ADP. Economists polled by Dow Jones are expecting private sector jobs grew by 50,000 in January, compared to the loss of 123,000 in December.
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