Retail giants report earnings, stay away from “toxic” stocks

CNBC’s Jim Cramer said on Friday that he is breathing a sigh of relief as downtrodden stocks ‘have already hit enough’, so investors can trade in a safer environment next week – although they still need to tread carefully.

“When we have been knocked down to these levels, we reach a point where stocks that would normally have been clubbed have already received enough hits, and that alone has allowed them to have at least a short tire rebound, as it may have been today, “said”[ads1]; Mad Money “-verten.

“Many stocks have finally come down to a point where it is 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 Friday to end a volatile week of trading, with the Dow Jones Industrial Average rising 1.47% while the S&P 500 rose 2.39%. The Nasdaq Composite rose 3.82 percent.

Cramer noted that he is looking for St. Louis Federal Reserve President James Bullard’s comments on inflation next week.

“He’s a hawk-hawk – he’s also my type of hawk. Bullard knows it’s only going to get harder to break the inflation cycle if the Fed doesn’t act decisively right now,” Cramer said.

He also previewed next week’s results overview. All earnings and revenue estimates are given with permission from FactSet.

Monday: Weber, Warby Parker

Weber

• Q2 2022 results report before the clock; telephone conference at 8:30 ET
• Estimated EPS: 18 cents
• Estimated income: $ 659 million

Warby Parker

• Q1 2022 result release before the bell; telephone conference at 08.00 ET
• Estimated EPS: $ 0
• Estimated income: $ 154 million

Cramer said that both Weber’s and Warby Parker’s earnings will reveal market sentiment towards companies that were recently listed.

Tuesday: Home Depot, Walmart

Home Depot

• Q1 2022 result report at 06.00 ET; telephone conference at 9.00 ET
• Estimated EPS: $ 3.69
• Estimated revenue: $ 36.7 billion

Walmart

• Q1 2023 income statement at 07.00 ET; telephone conference at 08.00 ET
• Estimated EPS: $ 1.48
• Estimated revenue: $ 138.84 billion

Wednesday: Lowe’s, Target, Cisco

Lowes

• Q1 2022 result report at 06.00 ET; telephone conference at 9.00 ET
• Estimated EPS: $ 3.22
• Estimated revenue: $ 23.77 billion

Goal

• Q1 2022 result release before the bell; telephone conference at 08.00 ET
• Estimated EPS: $ 3.07
• Estimated revenue: $ 24.46 billion

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

Cisco

• Q3 2022 result report at 16:05 ET; conference call at 4:30 p.m. ET
• Estimated EPS: 86 cents
• Estimated revenue: $ 13.34 billion

“For this to work, the company must increase the speed of the transition from hardware to software, otherwise the stock will become bulky, Cramer said.

Thursday: Kohl’s, Palo Alto Networks

Kohls

• Q1 2022 result report at 07.00 ET; telephone conference at 9.00 ET
• Estimated EPS: 71 cents
• Estimated revenue: $ 3.68 billion

“I think this could be a three-down, ten-up situation because the stock has fallen so far from its heights,” Cramer said. “I like those odds.”

Palo Alto Networks

• Q3 2022 results report after closing; conference call at 4:30 p.m. ET
• Estimated EPS: $ 1.68
• Estimated revenue: $ 1.36 billion

Cramer said he thinks the company may be “the best story of the week.”

Friday: Deere

• Q2 2022 results report before the clock; telephone conference at 10 ET
• Estimated EPS: $ 6.69
• Estimated revenue: $ 13.23 billion

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

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