Pepsi and Costco Highlight This Week’s Earnings Reports
Mad Money host Jim Cramer gave investors a preview of the key earnings reports coming out this week.
This week’s earnings report kicks off with Mosiac [[MOS]] which reports after the close on Monday. Cramer believes the fertilizer stock will help educate investors understand as to why the fertilizer space is so crucial. Cramer believes that Mosaic’s report will be magnificent and the fact that we are “running out of food” makes Mosaic a buy.
The focus on Tuesday will be Yum! Brands’ [[YUM]]. In particular, investors should pay attention to the restaurant’s success in China.
Cramer did express some concern about Costco’s [[COST]] earnings report on Wednesday. He is not really concerned about the earnings numbers themselves, but the stock is priced for perfection following its recent rally. “I think Costco’s going to have to shoot the lights out just to stay in the game up here,” said Cramer. He recommends that investors wait for a pullback before buying shares.
Cramer isn’t excited about Monsanto [[MON]] which will report on Wednesday. Cramer expects disappointing sales of Roundup, which has been accused of causing birth defects. In addition, Monsanto’s hybrid corn seed has not been hitting its targets for yields. Cramer recommends investors look to DuPont [[DD]] rather than Monsanto.
Pepsi’s [[PEP]] earnings call on Thursday should give investors an indication as to whether input costs are rising. Cramer believes this might give investors an opportunity to buy the stock below $65. The company has been performing great, so only concerns over margins could bring the stock down.
Of course the key report this week will be Friday’s jobs report.