Cramer’s week ahead: The impact of inflation and the reopening as earnings season accelerates

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Jim Cramer

Scott Mlyn | CNBC

CNBC’s Jim Cramer stated Friday that the “actual earnings” season will get underway Monday after the main banks posted their quarterly outcomes earlier this week.

“We’re truly going to get the impact of each inflation and the reopening,” he stated on “Mad Money.” “I believe the former’s a giant adverse, however the latter’s so optimistic that the ball can keep in the air, prepared for a gorgeous stuff over the internet and to the flooring.”

Cramer gave his sport plan for the week forward. Earnings-per-share projections are based mostly on FactSet estimates:

Monday: Coca-Cola, United Airlines, IBM

Coca-Cola

  • Q1 2021 earnings launch: earlier than market; convention name: 8:30 a.m.
  • Projected EPS: 50 cents
  • Projected income: $8.68 billion

“I fear that Coca-Cola’s pure beverage with no snacking enterprise,” Cramer stated, “however I nonetheless anticipate an excellent quantity from them and an ideal story about meals service reopenings.”

United Airlines

  • Q1 2021 earnings launch: after market; convention name: Tuesday at 10:30 a.m.
  • Projected losses per share: $7.05
  • Projected income: $3.27 billion

“If it is something like Delta, you are going to hear about the coming growth,” he stated, including the inventory can proceed to rally. “I believe it is the proper place to be.”

IBM

  • Q1 2021 earnings launch: after market; convention name: 5 p.m.
  • Projected EPS: $1.69
  • Projected income: $17.32 billion

“What will the new IBM do, the one which stored the fast-growing companies led by Red Hat? I believe it is too early to inform, however the inventory’s been hanging in there,” Cramer stated.

Tuesday: Abbott Laboratories, Johnson & Johnson, Procter & Gamble, Netflix

Abbott Laboratories

  • Q1 2021 earnings launch: earlier than market; convention name: 9:30 a.m.
  • Projected EPS: $1.27
  • Projected income: $10.69 billion

“Abbott’s carried out such nice work on Covid diagnostics … that it is onerous to consider they will not hit it out of the park,” Cramer stated.

Johnson & Johnson

  • Q1 earnings 2021 launch: 6:45 a.m.; convention name: 8:30 a.m.
  • Projected EPS: $2.34
  • Projected income: $22 billion

“J&J’s gotten extra controversial, although I believe it has been unfairly punished by a CDC that appears extra intent on scaring the public out of getting a vaccination than truly getting individuals vaccinated with some security,” he stated. “I guess J&J has a incredible quarter and reveals a fair higher pipeline.”

Procter & Gamble

  • Q3 2021 earnings launch: earlier than market; convention name: 8:30 a.m.
  • Projected EPS: $1.19
  • Projected income: $17.97 billion

“The Street’s truly apprehensive about this one. First, there are powerful comparisons versus the stay-at-home numbers they have been placing up a 12 months in the past,” the host stated. “Second, they’re dealing with actual inflation from plastics to surfactants [and] freight.”

Netflix

  • Q1 2021 earnings launch: Four p.m.; convention name: 6 p.m.
  • Projected EPS: $2.97
  • Projected income: $7.14 billion

“This ought to be enjoyable. Netflix usually beats the numbers and the principals all the time appear to have a good time speaking about their enterprise,” he stated. “Even the Netflix convention name has good content material.”

Wednesday: Verizon, Lam Research, Chipotle

Verizon

  • Q1 2021 earnings launch: 7:30 a.m.; convention name: 8:30 a.m.
  • Projected EPS: $1.29
  • Projected income: $32.47 billion

“I’m starting to consider it is caught there, making it really feel like extra of a bond than a inventory,” Cramer stated. “If you have gotta personal a telephone firm, I’ve to inform you I favor T-Mobile.”

Lam Research

  • Q3 2021 earnings launch: after market; convention name: 5 p.m.
  • Projected EPS: $6.61
  • Projected income: $3.72 billion

“Lam is the reply to the semiconductor scarcity—they make the gear wanted to fabricate new chips,” he stated. “When you hear Taiwan Semi endlessly speaking about elevating its capital gear finances, that signifies that Lam goes to make a fortune.”

Chipotle

  • Q1 earnings launch: 4:10 p.m.; convention name: 4:30 p.m.
  • Projected EPS: $4.89
  • Projected income: $1.75 billion

“I’m betting this paragon of nice pure meals and phenomenal customer support will blow the doorways off the quarter, triggering one other spherical of value goal boosts as the analysts desperately attempt to play catch-up to the inventory value,” the host stated.

Thursday: Union Pacific, Dow, Danaher, Nucor, Intel Boston Beer

Union Pacific

  • Q1 2021 earnings launch: Eight a.m.; convention name: 8:45 a.m.
  • Projected EPS: $2.06
  • Projected income: $5.05 billion

“I believe Union Pacific goes to inform a narrative of making extra with much less, that means effectivity galore,” Cramer stated.

Dow

  • Q1 2021 earnings launch: 6 a.m.; convention name: Eight a.m.
  • Projected EPS: $1.12
  • Projected income: $11.09 billion

“If PPG is any information from final night time, it ought to put up some superb numbers, permitting the inventory to interrupt out to the $70s,” he stated.

Danaher

  • Q1 2021 earnings launch: 6 a.m.; convention name: Eight a.m.
  • Projected EPS: $1.76
  • Projected income: $6.29 billion

“I am unable to wait to see how properly they’re doing,” the host stated. “I anticipate a incredible quarter.”

Nucor

  • Q1 2021 earnings launch: TBD; convention name: 2 p.m.
  • Projected EPS: $3.05
  • Projected income: $7.18 billion

“We’re in an inflationary period, whether or not it is transitory or whether or not it is not, so Nucor ought to put up some unbelievable numbers,” he stated.

Intel

  • Q1 2021 earnings launch: after market; convention name: 5 p.m.
  • Projected EPS: $1.14
  • Projected income: $17.78 billion

“I believe Pat’s doing a terrific job inspiring individuals each inside and exterior this nice establishment,” Cramer stated. “If the inventory will get hit, I’d be a purchaser. Gelsinger cannot flip the Intel battleship on a dime, however it will likely be turned.”

Boston Beer

  • Q1 2021 earnings launch: Four p.m.; convention name: 5 p.m.
  • Projected EPS: $2.55
  • Projected income: $477 million

“I believe the shorts can be leaning towards Boston Beer, as they all the time do, as a result of of the [spiked seltzer] competitors,” he stated. “My view? The class’s rising so quickly, the mum or dad of Sam Adams ought to do exactly nice, thanks.”

Friday: Honeywell, American Express

Honeywell

  • Q1 2021 earnings launch: earlier than market; convention name: 8:30 a.m.
  • Projected EPS: $1.80
  • Projected income: $8.08 billion

“Honeywell’s changing into a software-as-a-building-service play, to not point out an unbelievable well being care firm. I believe the numbers can go larger nonetheless,” Cramer stated.

American Express

  • Q1 earnings launch: 7 a.m.; convention name: 8:30 a.m.
  • Projected EPS: $1.61
  • Projected income: $9.21 billion

“It’s all about gauging the energy of the nice reopening. With its mixture of small enterprise … credit score, journey and leisure traces, we must always be capable to get an excellent learn on the energy of the restoration going ahead,” he stated.

Disclosure: Cramer’s charitable belief owns shares of Abbott Laboratories, Union Pacific and Honeywell.

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