Cramer’s week ahead: Retail giants report earnings, stay away from ‘toxic’ stocks

Cramer’s week ahead: Retail giants report earnings, stay away from ‘toxic’ stocks


CNBC’s Jim Cramer said Friday that he’s breathing a sigh of relief as beaten-down stocks ‘have already taken enough hits,’ allowing investors to trade in a safer environment next week –  though they still need to tread carefully.

“When we’ve been beaten down to these levels, we reach a point where stocks that would normally be clubbed have already taken enough hits, and that alone has allowed them to have at least a short covering rebound, which is what today might have been,” the “Mad Money” host said.

“Many stocks have finally come down to the point where it’s safe to be constructive, as long as you stay away from the most toxic areas, so I’m breathing a sigh of relief here,” he added.

Stocks rose on Friday to conclude a volatile week of trading, with the Dow Jones Industrial Average gaining 1.47% while the S&P 500 increased 2.39%. The Nasdaq Composite climbed 3.82%.

Cramer noted he is watching for St. Louis Federal Reserve President James Bullard’s comments on inflation next week.

“He’s a hawk’s hawk — he’s also my kind of hawk. Bullard knows it is only going to get harder to break the cycle of inflation if the Fed doesn’t act decisively right now,” Cramer said.

He also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Monday: Weber, Warby Parker

Weber

  • Q2 2022 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 18 cents
  • Projected revenue: $659 million

Warby Parker 

  • Q1 2022 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $0
  • Projected revenue: $154 million

Cramer said that both Weber’s and Warby Parker’s earnings will reveal the market’s sentiment toward companies that recently went public.

Tuesday: Home Depot, Walmart

Home Depot

  • Q1 2022 earnings release at 6 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $3.69
  • Projected revenue: $36.7 billion

Walmart

  • Q1 2023 earnings release at 7 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $1.48
  • Projected revenue: $138.84 billion

Wednesday: Lowe’s, Target, Cisco

Lowe’s 

  • Q1 2022 earnings release at 6 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $3.22
  • Projected revenue: $23.77 billion

Target 

  • Q1 2022 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $3.07
  • Projected revenue: $24.46 billion

“[The market’s] so beat up that all of them might work here. I see these retail stocks as barometers of the consumer,” Cramer said of Home Depot, Walmart, Lowe’s and Target.

Cisco

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: 86 cents
  • Projected revenue: $13.34 billion

In order for this one to work, the company needs to speed up its shift from hardware to software, or else the stock is going to get clobbered,” Cramer said.

Thursday: Kohl’s, Palo Alto Networks

Kohl’s 

  • Q1 2022 earnings release at 7 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: 71 cents
  • Projected revenue: $3.68 billion

“I think this could be a three-down, ten-up situation because the stock’s fallen so far from its highs,” Cramer said. “I like those odds.”

Palo Alto Networks 

  • Q3 2022 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: $1.68
  • Projected revenue: $1.36 billion

Cramer said he thinks the company could be “the single best story of the week.”

Friday: Deere

  • Q2 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected EPS: $6.69
  • Projected revenue: $13.23 billion

Deere stock “tends to react poorly to the headlines and then rebound at the end of the conference call,” Cramer noted. “Patience is a virtue.”

Disclosure: Cramer’s Charitable Trust owns shares of Cisco and Walmart.



Source

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More