5 Key Earnings Reports to Pay Attention to This Week
- October 11, 2010
- Dow Stocks, Featured, Financial Stocks, Industrial Stocks, Internet Stocks, Technology Stocks
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Going into the third quarter earnings season, many investment professionals are being very cautious and individuals investors should be too. The Dow has climbed 1,000 points in the past few weeks and is now back to trading above 11,000 for the first time since May. However, this week kicks off the third quarter earnings season in force and we will start to get a good look as to which direction the economy is heading.
For investors, the sheer number of companies reporting earnings can be overwhelming. It’s virtually impossible to track each one, so Mad Money host Jim Cramer has singled out 5 key earnings reports to pay attention to this week.
Railroad stock CSX [[CSX]] reports earnings on Tuesday. Mr. Cramer believes that investors can use CSX as a “pulse” on what is happening in the overall economy. He recommends paying particular attention to what the company says about China.
Intel [[INTC]] will be the second Dow Jones component to report earnings this quarter. The tech giant has put together a string of very strong earnings results, but there stock price has actually fallen. It would be hard for Wall Street analysts not to upgrade the stock this time around if INTC reports another strong quarter.
JP Morgan Chase
Last quarter, JP Morgan Chase [[JPM]] reported earnings that were $.42 above Wall Street’s expectations. However, uncertainty over financial regulation caused JPM shares to fall 12 percent in the weeks following the phenomenal earnings report. Cramer believes investors should pay most attention to what JP Morgan says about mortgages when they report their quarterly results on Wednesday.
On Thursday, internet giant Google [[GOOG]] will report their third quarter results. Google actually reported disappointing results last quarter, but the stock has surged over the past quarter due to optimism over Android. Investors should look for the company to show how they will make money from the popular mobile device. Jim Cramer is very bullish on Google which he believes is “phenomenally cheap” at just 20x earnings with a 16% growth rate.
By the end of the week, investors will have probably had their fill of earnings reports, but there is one final report to pay attention to on Friday. General Electric [[GE]] operates in so many diverse business areas that investors should get a good indication as to which sectors are performing well. Cramer would pay special attention to comments about healthcare or their aircraft sector.