There are many high quality stocks to buy

CNBC’s Jim Cramer on Friday told investors they should watch stocks rise as the reporting season draws to a close.

“There is a lot to buy if you buy companies that make money and return some of that money to shareholders through buybacks and dividends,” he said. “By the way, it’s still too early to pick high-growth stocks with little profit.”

Stocks were mixed on Friday, with the S&P 500 slightly up as it posted its worst weekly performance in nearly two months. All three major indices finished the week lower.

Cramer assured investors that the market’s drop this week does not mean it is heading into bear market territory. “We are seeing classic bull market behavior right now. There are moments when despair builds up.”

In addition to corporate earnings reports, he said he was following the January CPI report on Tuesday.

All earnings, earnings and economic data estimates for the week are provided by FactSet.

Monday: food on the tree

• 2022 Q4 Earnings at 6:55 AM ET; Conference call at 8:30 AM ET
• Projected earnings per share: 98 cents.
• Projected revenue: $1 billion

“To date, we have not seen a significant decrease in sales in supermarkets… But once this starts to happen, it will be a huge victory in the fight against inflation,” he said.

Tuesday: Coca-Cola, Airbnb.

Coca Cola

• 2022 Q4 Earnings at 6:55 AM ET; Conference call at 8:30 AM ET
• Projected earnings per share: 45 cents.
• Projected revenue: $10 billion

Kramer said he expects a solid quarter from the beverage giant.

Airbnb

• 2022 Q4 Earnings at 4:05 pm ET; Conference call at 4:30 pm ET
• Projected earnings per share: 25 cents.
• Projected revenue: $1.86 billion.

“I was adamant that this company is undervalued, but I just don’t know when it will be able to explode,” he said.

Wednesday: Bowlero, Shopify

Bowler

• Q2 2023 earnings report after close; Conference call at 4:30 pm ET
• Projected earnings per share: 16 cents.
• Projected income: $257 million.

Cramer predicted that the company would provide a large set of numbers.

Shopify

• Q4 2022 Post-Closed Earnings Statement; conference call at 5:00 pm ET
• Projected loss: 1 cent per share
• Projected revenue: $1.65 billion.

The company must show that it can turn to profitability, he said.

Thursday: Constellation Energy, Applied Materials, DraftKings, DoorDash

Constellation Energy

• Q4 2022 Income Statement TBD; conference call at 10 am ET
• Projected earnings per share: 26 cents.
• Projected revenue: $3.63 billion.

“I would stick with that as long as the Democrat is in the White House,” he said.

Applied materials

• 2023 Q1 Income Statement at 4:00 PM ET; Conference call at 4:30 pm ET
• Projected earnings per share: $1.93.
• Projected revenue: $6.69 billion

Cramer said he’s betting the company will report a weak quarter.

DraftKings

• Q4 2022 Post-Closed Earnings Statement; Conference Call Friday at 8:30 AM ET
• Projected loss: 61 cents per share
• Projected income: $798 million.

“I love DraftKings. I like the CEO… But I don’t like the legislative roadmap,” he said.

DoorDash

• 2022 Q4 Earnings at 4:05 pm ET; conference call at 5:00 pm ET
• Projected loss: 67 cents per share
• Projected revenue: $1.77 billion.

He said the company needs a plan to become profitable, as the market only cares about companies that can make solid profits.

Friday: Deer

• 2023 Q1 earnings report at 6:45 AM ET; conference call at 10 am ET
• Projected earnings per share: $5.54.
• Projected revenue: $11.34 billion.

Deere shares are the best way to play in a long-term farming bull market, Cramer said.