After a week packed with big earnings reports, Jim Cramer suggests putting stocks on your shopping list and waiting to buy until earnings-related jumps have subsided. While many experts suggest putting your money in index funds or ETFs that bundle sectors together instead of picking stocks, Cramer stressed that days like Thursday highlight the potential rewards of picking winners. “On the densest day of earnings season, the day where we get numbers from the most companies in one session, I find the whole day to be a giant celebration of the ingenuity of executives and their teams,” Cramer said. “It’s a validation not just of how good our companies are, and the CEOs are, but of the very concept of stock picking over indexing.” “Index fund ‘evangelistas’” likely wouldn’t have urged you to take any of the big winners, he added.
Meta Platforms shares soared Thursday after the company reported earnings and revenue that beat analyst expectations the day before. Facebook parent shares are up 170% since November, despite three straight sales declines. Microsoft was up after surpassing expectations on the top and bottom lines and reached a 52-week high Thursday. Eli Lilly shares rose more than 3% as the company lifted its full-year guidance and beat revenue estimates. “I think all of these winners, every one, is still a buy,” Cramer said. “There will be many reversals in this market, especially if the debt ceiling doesn’t get extended in time, so you’re going to get your chance.”