Jim Cramer said Friday that investors should be ready to find buying opportunities in the stock market with earnings season in full swing.
When companies report quarterly results, market players digest numbers quickly and Wall Street tends to make many mistakes, he said, pointing to trading action in Honeywell and American Express as an example.
“There will be reports next week that are met with negativity and not all of them will be genuinely bad, so I’m urging you to take advantage of that weakness,” the “Mad Money” host said.
With household brand names like Boeing, Microsoft, Starbucks and Amazon set to report, it’s shaping up to be the most brutal stretch of earnings season, he added.
“As we head into the next five days of earnings, you need to think about what gets crushed as much as what is working because this market’s creating some unbelievable buying opportunities,” Cramer said.
Cramer gave his game plan for the week ahead. Earnings-per-share projections are based on FactSet estimates:
Monday: Tesla
Tesla
Q1 2021 earnings release: after market; conference call: 5:30 p.m.
Projected EPS: 75 cents
Projected revenue: $10.48 billion
“These numbers impact more than just Tesla itself. There are dozens of electric vehicle SPACs, smaller stocks that need Tesla to succeed because it gives the whole group legitimacy,” Cramer said. “I like Tesla at these levels. I’m betting the quarter will be a good one.”
