Cramer’s week ahead: ‘I’m begging you’ to sell stocks of unprofitable companies

Cramer’s week ahead: ‘I’m begging you’ to sell stocks of unprofitable companies


CNBC’s Jim Cramer on Friday previewed next week’s earnings schedule and said that investors should use it as a chance to offload unprofitable companies from their portfolios.

The “Mad Money” host said that the market could be in for some pain next week after this week’s rallies, as investors digested the news of the Federal Reserve’s quarter-percentage-point interest rate hike, the ongoing Russia-Ukraine War and Covid outbreaks in Asia and Europe.

While investors shouldn’t sell off everything, next week could be a golden opportunity for investors to shuffle holdings around, Cramer said.

“If you still own the stocks of unprofitable companies that don’t even have any good cash flow and sell at high price multiples to sales, I’m begging you to use this chance, start by today, to do some selling and reposition yourself into more tangible companies with much cheaper stocks,” he said.

All earnings and revenue estimates are courtesy of FactSet.

Monday: Nike

Nike

  • Q3 2022 earnings release at 4:15 p.m; conference call at 5 p.m. ET
  • Projected EPS: 71 cents
  • Projected revenue: $10.6 billion

“I don’t expect Nike will actually have good numbers, but that’s now the conventional wisdom, which leaves open the possibility of an upside surprise,” Cramer said.

Tuesday: Nvidia, Adobe

Nvidia

  • Investor Day at 1 p.m. ET

“[Chief executive Jensen Huang’s] speech will define where tech is, where it’s going, and what are the boundaries that must be smashed,” Cramer said. “And he’ll smash them.”

Adobe

  • Q1 2022 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: $3.34
  • Projected revenue: $4.24 billion

Cramer said that he believes Adobe will have better results than Wall Street is expecting, “but the standards have gotten ridiculously high for this fabulous company.”

Wednesday: General Mills, KB Home, Ollie’s Bargain Outlet Holdings

General Mills

  • Q3 2022 earnings release before the bell; conference call at 9 a.m. ET
  • Projected EPS: 78 cents
  • Projected revenue: $4.56 billion

“The food stocks are a diminishing group. … They’re hurt by inflation in every part of their manufacturing chain. A lot less defensive than they used to be,” Cramer said of General Mills and other food companies.

KB Home

  • Q1 2022 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: $1.54
  • Projected revenue: $1.5 billion

Cramer said he expects that the company “blows away the numbers and even gets some recognition for doing so.”

Ollie’s Bargain Outlet Holdings

  • Q4 2021 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: 66 cents
  • Projected revenue: $513 million

Cramer said that a problem Ollie’s could face is limited inventory if other retailers don’t have any unsold products for Ollie’s to take off their hands due to consumers willing to pay full-price for everything.

Thursday: Darden Restaurants

Darden Restaurants

  • Q3 2022 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: $2.11
  • Projected revenue: $2.52 billion

Listening to Darden’s call will show where consumers are choosing to spend their money after staying in during the pandemic, Cramer said.

Friday: University of Michigan Consumer Sentiment Index

The University of Michigan Consumer Sentiment Index reports numbers for March Friday after the preliminary index dropped to 59.7 earlier this month, the lowest level in nearly 11 years, according to Reuters. Cramer said if the consumer sentiment index number turns out to be “gloomy,” that means bad news for gardening and outdoor living companies like Home Depot and Lowe’s.



Source

How much are Southwest’s new assigned seats? It depends
Business

How much are Southwest’s new assigned seats? It depends

Southwest Airlines new premium seats featuring extra legroom. Leslie Josephs/CNBC Southwest Airlines‘ first assigned seats went on sale this week for flights starting Jan. 27 of next year. What you’ll pay will vary. The price depends on the route, when you’re traveling and where you sit. Selecting your ideal seats can add hundreds of dollars […]

Read More
How wealthy yacht buyers plan to avoid the European tariffs
Business

How wealthy yacht buyers plan to avoid the European tariffs

Superyachts in Port Hercules, Monaco. John Lamb | The Image Bank | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. American boat buyers and European shipyards are scrambling to […]

Read More
Best Buy, Ikea test new kitchen concept in U.S. stores
Business

Best Buy, Ikea test new kitchen concept in U.S. stores

The logo of Best Buy and Ikea on shopping carts. Getty Images Best Buy said Thursday it will test mini-showrooms in some of its stores featuring Ikea products to show off kitchen design elements from the home retailer beside home appliances from the electronics store. Beginning this fall, the program will debut in 10 Best […]

Read More