Retail giants report profits, stay away from ‘toxic’ stocks

Retail giants report profits, stay away from ‘toxic’ stocks

CNBC’s Jim Cramer said on Friday he breathed a sigh of relief as depressed stocks “have taken enough hits already” for investors to trade in a safer environment next week — although they still need to tread carefully.

“If we’ve been pushed to these levels, we’re getting to a point where stocks that would normally be clubbed have taken enough blows already and that alone has allowed them at least a brief recovery in coverage, which might have been the case today ‘ said the Mad Money host.

“Many stocks have finally gotten to a 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.

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

Cramer noted that he is awaiting comments from St. Louis Federal Reserve Board Chairman James Bullard on inflation next week.

“He’s a hawk – he’s my kind of hawk too. Bullard knows that unless the Fed acts decisively now, breaking the inflation cycle will only make it harder,” Cramer said.

He also previewed next week’s paytable. All earnings and revenue estimates were provided by FactSet.

Monday: Weber, Warby Parker

weaver

  • Q2 2022 results release ahead of the bell; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: 18 cents
  • Estimated Revenue: $659 million

Warby Parker

  • Release of Q1 2022 results ahead of the bell; Conference call at 8 p.m. ET
  • Estimated earnings per share: $0
  • Estimated sales: $154 million

Cramer said both Weber’s and Warby Parker’s gains will reveal the market’s sentiment towards companies that have recently gone public.

Tuesday: Home Depot, Walmart

home depot

  • Q1 2022 results release at 6:00 am ET; Conference call at 9 p.m. ET
  • Estimated earnings per share: $3.69
  • Estimated revenue: $36.7 billion

Walmart

  • Q1 2023 results release at 7:00 am ET; Conference call at 8 p.m. ET
  • Estimated earnings per share: $1.48
  • Estimated Revenue: $138.84 billion

Wednesday: Lowes, Target, Cisco

lowes

  • Q1 2022 results release at 6:00 am ET; Conference call at 9 p.m. ET
  • Estimated earnings per share: $3.22
  • Estimated Revenue: $23.77 billion

goal

  • Release of Q1 2022 results ahead of the bell; Conference call at 8 p.m. ET
  • Estimated earnings per share: $3.07
  • Estimated Revenue: $24.46 billion

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

Cisco

  • Q3 2022 results release at 4:05 p.m. ET; Conference call at 4:30 p.m. ET
  • Estimated earnings per share: 86 cents
  • Estimated Revenue: $13.34 billion

For this to work, the company needs to accelerate its move from hardware to software or the stock will die,” Cramer said.

Thursday: Kohl’s, Palo Alto Networks

cabbage

  • Q1 2022 results release at 7:00 am ET; Conference call at 9 p.m. ET
  • Estimated earnings per share: 71 cents
  • Estimated Revenue: $3.68 billion

“I think this could be a three down and ten up situation because the stock is so far from its highs,” Cramer said. “I like these chances.”

Palo Alto Networks

  • Release of Q3 2022 results after close of trading; Conference call at 4:30 p.m. ET
  • Estimated earnings per share: $1.68
  • Estimated Revenue: $1.36 billion

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

Friday: deer

  • Q2 2022 results release ahead of the bell; Conference call at 10 a.m. ET
  • Estimated earnings per share: $6.69
  • Estimated Revenue: $13.23 billion

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

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

Leave a Reply

Your email address will not be published.