Business

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

CNBC’s Jim Cramer said Friday he was relieved that the beaten stock “has already taken enough hits” to allow investors to trade in safer terms next week, although they still need to tread carefully.

“When we get pushed down to these levels, we get to the point where stocks that are usually clubbed have already taken enough hits and that alone has allowed them to have at least a short rebound covering, which could be the case today. was,” said the host of “Mad Money”.

“Many stocks 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 breathed a sigh of relief,” he added.

Stocks rose on Friday, ending a volatile trading week, with the Dow Jones Industrial Average gaining 1.47% and the S&P 500 up 2.39%. The Nasdaq Composite rose 3.82%.

Cramer said he is following St. Louis Federal Reserve President James Bullard’s comments on inflation next week.

“He is a hawk-hawk—he is also my kind of hawk. Bullard knows that breaking the cycle of inflation will only be harder if the Fed doesn’t act decisively now,” Cramer said.

He also announced the earnings plan next week. All earnings and earnings estimates are provided by FactSet.

Monday: Weber, Warby Parker

Weber

  • 2022 second quarter earnings report before bell; Conference call at 8:30 AM ET
  • Projected earnings per share: 18 cents.
  • Projected income: $659 million.

Warby Parker

  • 1st quarter 2022 earnings report before the call; conference call at 8am ET
  • Projected EPS: $0
  • Projected income: $154 million.

Cramer said earnings from both Weber and Warby Parker will show the market’s attitude towards companies that have recently gone public.

Tuesday: Home Depot, Walmart.

Home Depot

  • 2022 Q1 Income Statement at 6:00 AM ET; conference call at 9 am ET
  • Projected earnings per share: $3.69.
  • Projected revenue: $36.7 billion.

walmart

  • 2023 Q1 Income Statement at 7:00 AM ET; conference call at 8am ET
  • Projected earnings per share: $1.48.
  • Projected revenue: $138.84 billion

Wednesday: Lowe’s, Target, Cisco

Lowe

  • 2022 Q1 Income Statement at 6:00 AM ET; conference call at 9 am ET
  • Projected earnings per share: $3.22.
  • Projected revenue: $23.77 billion.

Target

  • 1st quarter 2022 earnings report before the call; conference call at 8am ET
  • Projected earnings per share: $3.07.
  • Projected revenue: $24.46 billion.

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

Cisco

  • 2022 Q3 Earnings at 4:05 pm ET; Conference call at 4:30 pm ET
  • Projected earnings per share: 86 cents.
  • Projected revenue: $13.34 billion.

For this to work, the company needs to accelerate the transition from hardware to software or the stock will go bankrupt,” Cramer said.

Thursday: Kolya, Palo Alto Networks

Kolya

  • 2022 Q1 Income Statement at 7:00 AM ET; conference call at 9 am ET
  • Projected earnings per share: 71 cents.
  • Projected revenue: $3.68 billion.

“I think it could be a three down and ten up situation because stocks have dropped so far from their highs,” Cramer said. “I love these chances.”

Palo Alto Networks

  • Q3 2022 Post-Closed Earnings Statement; Conference call at 4:30 pm ET
  • Projected earnings per share: $1.68.
  • Projected revenue: $1.36 billion.

Kramer said he thought the company could be “the single best story of the week”.

Friday: Deer

  • 2022 second quarter earnings report before bell; conference call at 10 am ET
  • Projected earnings per share: $6.69.
  • Projected revenue: $13.23 billion.

Deere stock “usually reacts badly to headlines and then bounces back at the end of the conference call,” Cramer said. “Patience is a virtue.”

Disclosure: Cramer’s Charitable Trust holds shares in Cisco and Walmart.


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