Don’t let the Fed’s meeting cloud investment opportunities
CNBC’s Jim Cramer on Friday advised investors to keep their eyes open for chances to improve their portfolios next week.
“These big macro numbers and important Fed meetings are a drag – I know. They hide the actual opportunities out there. I want you to keep your eyes open for ideas and not be blinded by [Federal Reserve] light,” he said.
related investment news
Stocks fell to end the week down on Friday, amid investor concerns about a possible recession. Two key economic events take place next week, including the release of November’s Consumer Price Index report and the Federal Reserve’s December meeting.
Wall Street expects the Fed to raise interest rates by 50 basis points.
“We need to see a cooler CPI, where the Fed just raises interest rates by 50 basis points and then says it will take some time to assess the situation before tightening again,” Cramer said.
He also previewed next week’s results summary. All earnings and revenue estimates are provided courtesy of FactSet.
Monday: Coupa Software, Oracle
Coupa software
- Q3 2023 results announcement at 4:03 p.m. ET; conference call at 4:30 PM ET
- Estimated EPS: 17 cents
- Estimated revenue: $252 million
Cramer predicted that the stock will fall if the company does not prioritize profitability over growth.
Oracle
- Q2 2023 results announcement at 4:00 p.m. ET; conference call at 5 p.m. ET
- Estimated EPS: $1.17
- Estimated revenue: $11.95 billion
“At 16 times earnings, I just don’t see how much there is to lose,” he said.
Tuesday: Eli Lilly
- 2023 guidance interview at 9:00 a.m. ET
Investors who do not already own shares in Eli Lilly should wait to buy until after the call, Cramer advised.
Wednesday: Lennar
- Q4 2022 earnings announcement at 4:30 p.m. ET; conference call Thursday at 11 a.m. ET
- Estimated EPS: $4.88
- Estimated revenue: $9.98 billion
He predicted the company would likely report a “fantastic” quarter, which would be bad news for the Fed’s fight against inflation.
Thursday: Adobe
- Q4 2022 results announcement at 4:05 p.m. ET; conference call at 5 p.m. ET
- Estimated EPS: $3.50
- Estimated revenue: $4.53 billion
Cramer said it’s too early to buy shares in Adobe.
Friday: Darden Restaurants, Accenture
Darden restaurants
- Q2 2023 results announcement at 7 a.m. ET; conference call at 8:30 a.m. ET
- Estimated EPS: $1.43
- Estimated revenue: $2.43 billion
The company is likely to report a solid quarter, he predicted.
Accenture
- Q1 2023 earnings release at 6:45 a.m. ET; conference call at 8 a.m. ET
- Estimated EPS: $2.92
- Estimated revenue: $15.58 billion
“If you believe, as I do, that companies will cut back on digitization going forward to try to save money, you might want to avoid Accenture,” Cramer said.
Disclaimer: Cramer’s Charitable Trust owns stock in Eli Lilly.
