Cramer’s Week Ahead: Retail Giants Report Earnings and Avoid ‘Toxic’ Stocks


CNBC’s Jim Cramer said on Friday he was breathing a sigh of relief as battered stocks “have already taken enough of a beating”, allowing investors to trade in a safer environment next week – although they still need to show proof. of caution.

“When we’ve been beaten at these levels, we reach a point where stocks that would normally be bludgeoned have already taken enough hits, and that alone has allowed them to have at least a short bounce of coverage, which could have today summer,” the “Mad Money” host said.

“A lot of actions have finally gotten to the point where it’s safe to be constructive, as long as you stay away from the most toxic areas, so I breathe a sigh of relief here,” he added.

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

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

“He’s a hawk of a hawk – he’s my kind of hawk too. Bullard knows it will be increasingly difficult to break the cycle of inflation if the Fed doesn’t act decisively right now. “Cramer said.

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

Monday: Weber, Warby Parker

Weber

  • Publication of the results for the second quarter of 2022 before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 18 cents
  • Forecast revenue: $659 million

Warby Parker

  • Publication of the results for the first quarter of 2022 before the bell; conference call at 8 a.m. ET
  • Projected EPS: $0
  • Forecast revenue: $154 million

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

Tuesday: Home Depot, Walmart

Home deposit

  • First Quarter 2022 Earnings Release at 6:00 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $3.69
  • Projected revenue: $36.7 billion

walmart

  • First Quarter 2023 Earnings Release at 7:00 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

  • First Quarter 2022 Earnings Release at 6:00 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $3.22
  • Projected revenue: $23.77 billion

Target

  • Publication of the results for the first quarter of 2022 before the bell; conference call at 8 a.m. ET
  • Projected EPS: $3.07
  • Projected revenue: $24.46 billion

“[The market’s] so beaten they could all work here. I see these retail stocks as consumer barometers,” Cramer said of Home Depot, Walmart, Lowe’s and Target.

Cisco

  • Third Quarter 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

For this one to work, the company needs to accelerate its move from hardware to software, or the inventory is going to get crowded,” Cramer said.

Thursday: Kohl’s, Palo Alto Networks

Kohls

  • First Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: 71 cents
  • Projected revenue: $3.68 billion

“I think it could be a three or ten situation because the stock has fallen so far off its highs,” Cramer said. “I like those probabilities.”

Palo Alto Networks

  • Publication of third quarter 2022 results after closing; conference call at 4:30 p.m. ET
  • Projected EPS: $1.68
  • Projected revenue: $1.36 billion

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

Friday: Deere

  • Publication of the results for the second quarter of 2022 before the bell; conference call at 10 a.m. ET
  • Projected EPS: $6.69
  • Projected revenue: $13.23 billion

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

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


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