Own stocks that are cheap on a price-to-earnings ratio

CNBC’s Jim Cramer on Friday announced next week’s earnings list and advised investors to stick with companies that are profitable but affordable for investors.

“In this environment, you need to own companies that make things and do things profitably, but let’s also add stocks that stay cheap on a price-to-earnings basis,” the Mad Money host said.

Even as the Fed tries to bring down price increases, “we have already seen signs that inflation has peaked in many areas. Unfortunately, the same is happening with the rest of the economy,” he added later.

Cramer said he would be monitoring the Russian invasion of Ukraine on Monday and its impact on commodity prices. He also said he would be keeping an eye on 30-year Treasuries.

“30 year old, not 20th[-year], where all the action will take place as soon as the Fed starts selling its bond portfolio. You should know that this 30-year sell-off means much higher rates are coming,” Kramer said. “Get ready for them. Higher long-term rates are more likely to hurt the Nasdaq, as we saw today, not the Dow, which may well hold its ground because it’s full of real companies that fit my criteria.”

The Dow Jones Industrial Average rose 0.4% on Friday. The S&P 500 fell 0.27% and the Nasdaq Composite fell 1.34%. All three gave up within a week.

Also on Cramer’s radar is the expected “hot reading” of the March CPI, due next Tuesday.

“It will be relentless and nasty until we see the peak in everything. Whatever the so-called consensus is, it is almost always too low right now, and so it will lead bondholders to oversight and put pressure on the stock market that day,” he said.

Cramer also announced next week’s earnings report and shared his thoughts on each company that submitted reports. All earnings and earnings estimates are provided by FactSet.

Tuesday: Albertsons, CarMax

Albertsons

• fourth quarter 2021 earnings report before the call; Conference call at 8:30 AM ET
• Projected earnings per share: 64 cents.
• Projected revenue: $16.76 billion.

Cramer said he expects excellent results from Albertsons and is looking forward to an announcement as to whether they plan to go private or announce a major buyout or dividend.

CarMax

• Q4 2022 earnings before bell; conference call at 9 am ET
• Projected earnings per share: $1.27.
• Projected revenue: $7.5 billion

“Any sign that this endless series of price hikes is over or that demand has been wiped out… will reinforce my thesis that all used car companies should be sold,” Cramer said.

Wednesday: JPMorgan Chase, Bed Bath & Beyond, BlackRock, Delta Air Lines.

JPMorgan Chase

• 2022 Q1 earnings report at 6:45 AM ET; Conference call at 8:30 AM ET
• Projected earnings per share: $2.72.
• Projected revenue: $30.57 billion.

“Every time the Fed raises rates, these guys instantly become more profitable on a risk-free basis,” Cramer said.

Bed Bath and more

• Q4 2021 earnings report; Conference call at 8:15 am ET
• Projected earnings per share: 4 cents
• Projected revenue: $2.08 billion.

“The question here is simple: Will a major new shareholder, Ryan Cohen of Chewy and GameStop fame, join the board, and will the Buy Buy Baby business be sold to private equity? I think it’s all on the table and stocks are up. significant,” Kremer said.

BlackRock

• 1st quarter 2022 earnings report before the call; Conference call at 8:30 AM ET
• Projected earnings per share: $8.95.
• Projected revenue: $4.73 billion.

Cramer said he was interested in hearing about how “individuals can vote for their index fund shares.”

Delta Air Lines

• 1st quarter 2022 earnings report before the call; conference call at 10 am ET
• Projected loss: $1.30 loss per share
• Projected revenue: $8.74 billion.

Cramer said he supports travel promotions but finds it difficult for airlines to sell at the moment “given how much money they could lose in a Fed-imposed recession.”

Thursday: Goldman Sachs

Goldman Sachs

• 2022 Q1 earnings report at 7:30 AM ET; Conference call at 9:30 AM ET
• Projected earnings per share: $8.95.
• Projected revenue: $11.98 billion

“I’ve never seen Goldman Sachs stock so cheap… I think you have a pretty good chance of catching a bounce here, if not an investment, because by this point it shouldn’t be a surprise that Goldman’s first quarter was ugly.” Kremer said.