This earnings season has very excessive requirements

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CNBC’S Jim Cramer said Friday that investors are getting an opportunity to buy shares of high-quality companies after a tough day of trading on Wall Street to close out the month.

The major averages all fell less than 1% in the final session of April, making it a losing week for both the Dow Jones Industrial Average and the Nasdaq Composite.

Considering the full month, the Dow rose 2.71% while the S&P 500 and Nasdaq advanced more than 5% as investors digested corporate earnings reports.

“As we head into next week … remember that this earnings season has very high standards,” the “Mad Money” host said. “Keep your eyes peeled for more stocks that could get crushed in the wake of great quarters, and then do some buying.”

Cramer gave his game plan for the week ahead. Earnings-per-share projections are based on FactSet estimates:

Monday: Estee Lauder, Diamondback Energy earnings

Estee Lauder

  • Q3 2021 earnings release: before market; conference call: 9:30 a.m.
  • Projected EPS: $1.32
  • Projected revenue: $3.94 billion

“This company, led by the bankable Fabrizio Freda, put up some incredible numbers last time. I suspect we’re going to get another blowout,” Cramer said.

Diamondback Energy

  • Q1 2021 earnings release: after market; conference call: Tuesday, 9:00 a.m.
  • Projected EPS: $1.81
  • Projected revenue: $1.04 billion

“We’ve had some real disappointments today from Chevron and Exxon, despite crude’s recent jaunt to $65, so let’s see what they do with the fastest grower in the oil patch,” he said.

Tuesday: Pfizer, CVS, DuPont, AT&T, T-Mobile earnings

Pfizer

  • Q1 2021 earnings release: before market; conference call: 10 a.m.
  • Projected EPS: 78 cents
  • Projected revenue: $13.65 billion

“I think Pfizer’s a good stock, solid management, excellent, safe dividend yield,” Cramer said. “Given that the drug stocks have become the big disappointment of this earnings season, you might want to wait to see what happens before you pull the trigger.”

CVS

  • Q1 2021 earnings release: before market; conference call: 8 a.m.
  • Projected EPS: $1.73
  • Projected revenue: $68.36 billion

“I think that new CEO Karen Lynch has a good story to tell … but if you read through the entire Amazon letter last night, as I did, you’d know that they’re gunning for the drugstores,” he said. “That’s going to make it a tough slog. You never, ever want to compete against Amazon if you can avoid it.”

DuPont de Nemours

  • Q1 2021 earnings release: TBD; conference call: 8 a.m.
  • Projected EPS: 75 cents
  • Projected revenue: $3.85 billion

“I bet it’s ready to have a bang-up quarter,” the host said.

T-Mobile

  • Q1 2021 earnings release: 4:05 p.m.; conference call: 4:30 p.m.
  • Projected EPS: 54 cents
  • Projected revenue: $18.73 billion

“T-Mobile’s been the best investment in the group if you want capital appreciation. That’s not going to change,” he said.

Wednesday: General Motors, Scotts Miracle-Gro, PayPal, Twilio earnings

General Motors

  • Q1 2021 earnings release: 7:30 a.m.; conference call: 10 a.m.
  • Projected EPS: $1.05
  • Projected revenue: $33 billion

“Its stock has already been seasoned thanks to the pin action from Ford earlier this week,” Cramer said. “I think GM’s in better shape when it comes to chips, meaning the stock might be worth buying before the quarter.”

Scotts Miracle-Gro

  • Q2 2021 earnings release: before market; conference call: 9:00 a.m.
  • Projected EPS: $5.48
  • Projected revenue: $1.69 billion

“It’s one of those hobbies like boating that exploded during the pandemic period and I think carries over into this season,” he said. “Plus, Scotts can give us a sense of how strong the at-home cannabis market is.”

PayPal

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected EPS: $1.01
  • Projected revenue: $5.91 billion

Twilio

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: 10 cents
  • Projected revenue: $533 million

“Both companies are incredible, but their stocks have been erratic because secular growth stories are out of style in the Wall Street fashion show right now,” the host said. “If you like them, I recommend buying some before the quarter and some after to be sure you get the best basis.”

Thursday: ViacomCBS, Regeneron, Penn National Gaming, Roku, Peloton, AMC Entertainment earnings

ViacomCBS

  • Q1 earnings release: before market; conference call: 8:30 a.m.
  • Projected EPS: $1.22
  • Projected revenue: $7.33 billion

“We don’t really know where Viacom’s stock deserves to trade, given that it was bid up to more than twice where it is now by a foolish hedge fund, Archegos, and then when that fund collapsed, so did this stock,” Cramer said.

Regeneron

  • Q1 2021 earnings release: before market; conference call: 8:30 a.m.
  • Projected EPS: $8.74
  • Projected revenue: $2.53 billion

“The health complex in Washington has not been kind to Regeneron,” he said.

Penn National Gaming

  • Q1 2021 earnings release: 7:00 a.m.; conference call: 9:00 a.m.
  • Projected EPS: 26 cents
  • Projected revenue: $1.14 billion

“Gambling’s been on a real run here, momentum,” the host said. “Has the partnership with Barstool brought in the gamblers that I think they have? I bet the numbers are good.”

Roku

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: 15 cents
  • Projected revenue: $492 million

Peloton

  • Q3 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: 12 cents
  • Projected revenue: $1.12 billion

“We’ve adjusted our habits and will keep doing some of this stuff when the pandemic’s over, but these two [stocks] are two of the most expensive stocks in the entire market,” Cramer said “Their winning might not translate into higher stock prices.”

AMC Entertainment

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: $1.37
  • Projected revenue: $156 million

“It’s got so much stock for sale that I don’t think it can rally, even as the reopening will save the business,” he said.

Disclosure: Cramer’s charitable trust owns shares of DuPont de Nmours.

Disclaimer

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