TJX - Jim Cramer Tells Investors To 'Do The Homework' And Look Beyond Earnings Figures: '...Causing People To Make Snap Judgments' | Benzinga
Jim Cramer has advised investors to look beyond the numbers in financial reports, saying that the current method of reporting is leading to false judgments.
What Happened: Cramer, on his show “Mad Money,” emphasized the need to read between the lines during earnings season. He pointed out that the current method of reporting on stocks is failing to provide an accurate representation of a company’s worth, reported CNBC on Tuesday.
"It's the way we report on stocks, all of us: It's not working anymore, it's failing us, it's too glib, too inconsistent, too unrepresentative of a company's worth. The reportage is causing people to make snap judgments that turn out to be false judgments, and it's got to stop," Cramer said.
Using the recent earnings of Home Depot Inc (NYSE:HD) and Lowe’s Companies Inc (NYSE:LOW) as examples, Cramer highlighted the importance of looking beyond the headlines. Despite a year-over-year sales decline, Home Depot’s CEO, Ted Decker, expressed confidence in the company’s inventory position. Cramer suggested that this could lead to improved future earnings.
Similarly, Lowe’s CEO, Marvin Ellison, acknowledged a near-term pressure on do-it-yourself projects but noted a stable sales trend among home professionals. Cramer interpreted this as a sign ...