Retail giants report earnings, steer clear of ‘toxic’ stocks

CNBC’s Jim Kramer said Friday he’s breathing a sigh of relief because tumbling stocks have “already taken enough hits,” allowing investors to trade in a safer environment next week — although they still need to tread carefully.

“When we’ve been beaten to these levels, we get to a point where stocks that are usually clubbed have already taken enough hits, and that alone has allowed them to get at least a short-covering bounce, which today would have been, ‘the’mad money‘ said the host.

“Many stocks have finally come down to the point where it’s safe to be constructive, as long as you stay away from the most toxic areas, so I’m breathing a sigh of relief here,” he added.

stock soared Friday To conclude a volatile week of trading, the Dow Jones Industrial Average rose 1.47% while the S&P 500 gained 2.39%. The Nasdaq Composite Index is up 3.82%.

Cramer indicated that he is watching for comments from St. Louis Federal Reserve Chairman James Bullard on inflation next week.

“He’s a hawk – he’s also the hawkish kind to me,” Kramer said. “Bullard knows it’s only going to be difficult to break the inflation cycle if the Fed doesn’t act decisively right now.”

Also reviewed the earnings list for the coming week. All profit and revenue estimates are provided by FactSet.

Monday: Weber, Warby Parker

Weber

• Announcing Q2 2022 earnings before the bell; Conference call at 8:30 a.m. ET
• Expected EPS: 18 cents
• Expected revenue: $659 million

Warby Parker

• Announcing Q1 2022 earnings before the bell; Conference call at 8 a.m. ET
• Expected EPS: $0
• Expected revenue: $154 million

Cramer said the earnings from Weber and Warby Parker will reveal market sentiment toward the companies that have recently gone public.

Tuesday: Home Depot, Walmart

Home Depot

• Announcing Q1 2022 earnings at 6 a.m. ET; Conference call at 9 a.m. ET
• Expected EPS: $3.69
• Expected revenue: $36.7 billion

Walmart

• First Quarter 2023 Earnings Announcement at 7 AM ET; Conference call at 8 a.m. ET
• Expected EPS: $1.48
• Expected revenue: $138.84 billion

Wednesday: Lowe’s, Target, Cisco

Louie

• Announcing Q1 2022 earnings at 6 a.m. ET; Conference call at 9 a.m. ET
• Expected EPS: $3.22
• Expected revenue: $23.77 billion

Goal

• Announcing Q1 2022 earnings before the bell; Conference call at 8 a.m. ET
• Expected EPS: $3.07
• Expected revenue: $24.46 billion

“[The market’s] So they might all work here. I see these retail stocks as consumer metrics, Cramer said of Home Depot, Walmart, Lowe’s and Target.

Cisco

• Q3 2022 earnings release at 4:05 PM ET; Conference call at 4:30 p.m. ET
• Expected EPS: 86 cents
• Expected revenue: $13.34 billion

“For this hardware to work, the company needs to speed up its shift from hardware to software, or else inventory will take a hit,” Kramer said.

Thursday: Coles, Palo Alto Networks

kohl

• Announcement of Q1 2022 earnings at 7 AM ET; Conference call at 9 a.m. ET
• Expected earnings per share: 71 cents
• Expected revenue: $3.68 billion

“I think this could be a triple, and a 10, situation because the stock is down so far from its highs,” Cramer said. “I love those odds.”

Palo Alto Networks

• Announcing Q3 2022 earnings after closing; Conference call at 4:30 p.m. ET
• Expected EPS: $1.68
• Expected revenue: $1.36 billion

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

Friday: monastery

• Announcing Q2 2022 earnings before the bell; Conference call at 10 a.m. ET
• Expected EPS: $6.69
• Expected revenue: $13.23 billion

Kramer noted that Deere’s stock “tends to respond poorly to headlines and then bounce at the end of the conference call.” “Patience is a virtue.”

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