Cramer’s week ahead; The market needs hurdles resolved before a rally

CNBC’s Jim Cramer warned investors on Friday that a market rally has no chance of continuing until the causes of the turmoil are resolved.

“If we want the market to make a meaningful comeback, we need China to reopen, Russia to pull out of Ukraine, and the [Federal Reserve] to curb inflation with a 100 basis point rate hike,” the ‘Mad Money’ host said. “Unfortunately, only one of those three is in America’s control.”

His comments follow a volatile week of trading, rocked by missed quarters of earnings by retail giants, growing investor concerns about inflation and global geopolitical tensions.

The S&P 500 closed around 19% below its all-time high while the Nasdaq Composite hit 30% of its highs, in bearish territory. The Dow Jones Industrial Average recorded its first eight-week losing streak since 1923.

In addition to giving his thoughts on the current market, Cramer looked ahead to next week’s earnings list and gave his thoughts on each reporting company. All earnings and income estimates are courtesy of FactSet.

Monday: Zoom

  • Publication of Q1 2023 results after closing; conference call at 5 p.m. ET
  • Projected EPS: 96 cents
  • Projected revenue: $1.23 billion

Zoom’s stock will stay low unless the company innovates or acquires another company that helps it do so, Cramer said.

Tuesday: Best Buy, AutoZone, Toll Brothers

best buy

  • Publication of the results for the first quarter of 2023 before the bell; conference call at 8 a.m. ET
  • Projected EPS: $1.59
  • Projected revenue: $10.45 billion

Cramer noted that while he normally urges investors to buy shares of Best Buy at its current price, buying anything lately seems risky.

Auto area

  • Publication of the results for the third quarter of 2022 before the bell; conference call at 10 a.m. ET
  • Projected EPS: $26.20
  • Projected revenue: $3.71 billion

Cramer said the company’s stock is a winner.

Toll Brothers

  • Publication of second quarter 2022 results after closing; conference call at 8:30 a.m. ET
  • Projected EPS: $1.50
  • Projected revenue: $2.08 billion

“Most skeptics … believe profits will be halved in the future, if not more,” Cramer said.

Wednesday: Nvidia

  • Publication of Q1 2023 results after closing; conference call at 5 p.m. ET
    Projected EPS: $1.30
  • Projected revenue: $8.12 billion

“The action before the quarter was awful. … I actually think the impression will be good, I just don’t know if anyone will care,” Cramer said.

Thursday: Macy’s, Costco

Macy’s

  • Publication of the results for the first quarter of 2022 before the bell; conference call at 8 a.m. ET
  • Projected EPS: 82 cents
  • Projected revenue: $5.33 billion

Macy’s has a similar product line to Target, which reported earnings below expectations this quarter, Cramer noted.

Costco

  • Third Quarter 2022 Earnings Release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $3.04
  • Projected revenues; $51.32 billion

Cramer said that while the company is doing well, its stock is down so much that a huge special dividend and buyout might be the only thing that can bounce it back.

Friday: canopy growth

  • Publication of the results for the fourth quarter of 2022 before the bell; conference call at 10 a.m. ET
  • Projected EPS: $10.70
  • Projected revenue: $130 million

“Canopy needs national legislation promoting the use of marijuana, not just full legalization, but subsidies” to get its stock back to its previous highs, Cramer said.

Disclosure: Cramer’s Charitable Trust owns shares of Costco and Nvidia.

Leave a Reply