Overvalued IPOs can dim a positive earnings season

Overvalued IPOs can dim a positive earnings season


Verizon: The telecommunications company releases its earnings results before the bell.

“I expect a good quarter from Verizon, which will be greeted positively,” Cramer said.

United Technologies: United Technologies, which makes aircraft engines, HVAC systems and other products, reports earnings before the market opens.

“I think they’ll do fine and we’re getting closer to that big breakup of the company: elevators … climate controls, and then of course aerospace … and that will unlock a ton of value,” he said.

Coca-Cola: The soda giant will serve up its latest earnings results before stocks start trading.

The Coke maker “follow a picture-perfect accelerated growth quarter from PepsiCo, so they’re in a tough position — too tough for me,” Cramer said.

Procter & Gamble: Kimberly-Clark’s earnings call will provide an early glimpse into what could be expected in Procter & Gamble’s report, which comes in the morning, Cramer said.

“If freight and plastic are under control for Kimberly, you can bet that they will for P&G, too, which should propel that incredible stock even higher,” he said. “If it goes down, I’d consider buying some.”

Centene: Centene has an earnings call before the bell. The report will tell investors how the managed care sector will trade, Cramer said.

“I believe Centene will report a terrific number, but health care is hated right now,” he said. “If the stock can rally anyway, let’s just say that’s good news for this horrendous group.”

Texas Instruments: Texas Instruments is another “tell” stock for the semiconductor space and reports earnings after the bell.

“As for the semis, they need their temperature taken constantly. Texas Instruments will tell us whether the group is too hot or just right,” he said.

Snap: The parent of Snapchat, is up more than 111% this year.

“I don’t care all that much about Snap after the close, except that its stock has doubled since the start of the year,” Cramer said. “But in light of the enthusiasm for Pinterest, we need to take a good hard look at the level of euphoria in this market to be sure things aren’t totally out of control.”

eBay: The online marketplace group will give quarter results after the bell, which could include a strategic review from activist investor Elliott Partners, Cramer said.

“I hope they break up the company to unlock value,” he said.



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