Thursday’s rally showed the power of stock picking, says Jim Cramer


In a week filled with big earnings reports, there’s no harm in putting stocks on your shopping list and waiting to buy until earnings-related jumps have subsided, says Jim Cramer THURSDAY.

While many pundits might advise against stock picking and instead suggest betting on an index fund or sector-aggregating ETFs, Cramer pointed out that days like Thursday highlight the potential gain of picking winners.

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“The busiest day of earnings season, the day we get the 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 only of the quality of our companies and their CEOs, but also of the very concept of stock picking rather than indexing.”

“The index fund ‘evangelistas’ probably wouldn’t have pushed you to pick one of the big winners, he added.

Shares of Metaplatforms soared on Thursday after the company reported earnings and revenue that beat analysts’ expectations the day before. Shares of parent company Facebook have risen 170% since November, despite the company previously reporting three straight quarters of declining sales.

Microsoft was up after beating expectations on the top and bottom lines and hit a 52-week high on Thursday. And Eli Lily Shares rose more than 3% as the company raised its full-year guidance and beat its revenue estimate.

“I think all of these winners, each one, is still a buy,” Cramer said. “There will be many reversals in this market, especially if the debt ceiling is not extended in time, so you will have your chance.”

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