We recently compiled a list of the Jim Cramer is Talking About These 14 Stocks Before Earnings. In this article, we are going to take a look at where Morgan Stanley (NYSE:MS) stands against the other stocks Jim Cramer is talking about before earnings.
As earnings season kicks off, Jim Cramer of Mad Money offered insights on what investors should watch in the coming week on Wall Street. He highlighted the anticipated reports from several major banks, along with a few other companies, as key events to monitor.
Cramer expressed optimism about the current market conditions, noting that the situation aligns with his previous predictions that the market would thrive once the Federal Reserve began reducing interest rates while the economy remained strong. He remarked on the spectacular earnings reported by some major banks on Friday, emphasizing that this positive news is particularly impactful now, as opposed to previous instances when the Fed was tightening, causing good news to go largely unnoticed. Cramer believes that with the Fed now supportive of the market, there is potential for more favorable times ahead.
Looking to Monday, Cramer predicted that the focus will shift away from earnings reports due to other significant developments over the weekend. He mentioned the anticipated unveiling of a Chinese stimulus package and noted that although the rally in China has stalled, it could regain momentum if the Chinese government injects substantial funds into real estate and the stock market.
“Now, on Monday, we won’t be focused on earnings. There’s a lot of other stuff happening over the weekend. For instance, I think we’ll be parsing the Chinese stimulus package that’s going to be unveiled. The China rally is stalled, but it can get rolling again if the Chinese Communist Party keeps throwing tens of billions of dollars for the stimulus at real estate, at the stock market.”
Cramer warned that the financial sector will face a significant test on Tuesday, as different banks will be reporting their earnings. Cramer reminded investors that we are just at the beginning of one of the year’s four reporting periods, which can be chaotic and open to various interpretations.
“We’re at the beginning of one of the year’s four reporting periods,” he said. “They’re jumbled. They’re open to a lot of interpretation. They’re fast. So listen to the calls, ponder a moment, and only then should you pull the trigger.”
Our Methodology
For this article, we compiled a list of 14 stocks that are slated to release earnings this week and were discussed by Cramer during his episode of Mad Money on October 11. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 64
The Procter & Gamble Company (NYSE:PG) is set to release its earnings report on October 18. Cramer expressed concern about the company’s performance in China, saying:
“Friday, we hear from Procter & Gamble. And I fear what they’re going to say about China. Last quarter, their Chinese numbers were terrible. I don’t know if they can change that in just three months. The stock went up to $171 today, that worries me. I think it’s too hot. We sold the stock for the Charitable Trust this week. I think there are better places to be.”
Procter & Gamble (NYSE:PG), a leading name in the consumer packaged goods industry, operates globally, providing an extensive range of products that cater to various everyday needs. With a portfolio that holds personal care items, grooming products, health care solutions, and household cleaning supplies, it has a variety of trusted brands. From hair care and shaving essentials to oral hygiene, laundry, and family care products, the company has established itself as a household staple.
In recent years, Procter & Gamble (NYSE:PG) has navigated the challenges presented by the pandemic and the current inflationary environment effectively. The company has been able to implement price increases while maintaining customer loyalty, leading to a significant increase in organic sales. For fiscal 2024, which concluded on June 30, it reported a 4% rise in organic sales, largely fueled by a combination of higher sales volumes, price adjustments, and an uptick in sales of premium items. The core earnings per share saw an increase of 12%.
Additionally, the company is focused on returning value to its shareholders, which is evident in its substantial dividend payments and share repurchase programs. In fiscal 2024, the company distributed $9.3 billion in dividends and allocated $5 billion for share repurchases. The company’s recent guidance for fiscal 2025 shows expectations for approximately $10 billion in dividend payments and between $6 billion to $7 billion in stock repurchases.
Overall PG ranks 12th on our list of the stocks Jim Cramer is talking about before earnings. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
