On Friday, CNBC’s Jim Cramer told investors that stocks could have another good week of trading, given the good economic conditions.
“As the year draws to a close, vacations will become more and more of a priority. Right now the outlook is murky – too much cross-currents. But if the labor market remains strong and inflation remains brought under control, we could have another very good week,” he said.
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Stocks closed the week on Friday, marking the first time since October that all three major indexes posted consecutive weekly gains.
Markets have been volatile this week as investors digested Federal Reserve Chairman Jerome Powell’s indication that the central bank may soon begin to slow its pace of interest rate hikes and searing data on wages and labor.
Cramer said he was watching the University of Michigan Producer Price Index and Consumer Confidence Index reports due out next week, and worried the sentiment might be too cold.
“Right now we need a boost, a big boost, if only to save Christmas for retail,” he said.
He also previewed next week’s earnings list. All earnings and income estimates are courtesy of FactSet.
Tuesday: AutoZone, Toll Brothers, SentinelOne
Auto area
- First Quarter 2023 Earnings Release at 6:55 a.m. ET; conference call at 10 a.m. ET
- Projected EPS: $25.3
- Projected revenues; $3.86 billion
He said the action has been one of his favorites for years.
Toll Brothers
- Fourth Quarter 2022 Earnings Release at 4:30 p.m. ET; conference call on Wednesdays at 8:30 a.m. ET
- Projected EPS: $4.01
- Projected revenue: $3.17 billion
While it’s generally a bad idea to buy housing stocks entering a tightening cycle that could trigger a recession, Powell’s recent remarks could make the stock an attractive investment, Cramer said.
SentinelOne
- Publication of Q3 2023 results after closing; conference call at 5 p.m. ET
- Projected loss: loss of 11 cents per share
- Projected revenue: $180 million
He said he didn’t know when the stock would bottom.
Wednesday: Campbell Soup, Ollie’s Bargain Outlet Holdings, Brown-Forman, Lowe’s
Campbell’s Soup
- First Quarter 2023 Earnings Release at 7:30 a.m. ET; conference call at 8 a.m. ET
- Projected EPS: 88 cents
- Projected revenue: $2.45 billion
He said the company had been “reinvented” by CEO Mark Clouse.
Ollie’s Bargain Outlet Holdings
- Publication of the results for the third quarter of 2022 before the bell; conference call at 8:30 a.m. ET
- Projected EPS: 40 cents
- Forecast revenue: $429 million
The company is a “great” bargain store, which means its quarter should have stellar results, Cramer said.
Brown Forman
- Publication of Q2 2023 results at 8 a.m. ET; conference call at 10 a.m. ET
- Projected EPS: 55 cents
- Projected revenue: $1.08 billion
Cramer pointed out that liquor sales tend to do well in recessions, which is good news for distiller Jack Daniel’s.
Thursday: Broadcom: Costco, Lululemon Athletica
Broadcom
- Fourth Quarter 2022 Earnings Release at 4:15 p.m. ET; conference call at 5 p.m. ET
- Projected EPS: $10.3
- Forecast revenue: $8.90 billion
The semiconductor company will post excellent profits even if cloud growth slows, Cramer predicted.
Costco
- First Quarter 2023 Earnings Release at 4:15 p.m. ET; conference call at 5 p.m. ET
- Projected EPS: $3.12
- Projected revenues; $58.36 billion
While the retailer’s quarter will likely be strong, the best bargain stock is TJX, he said.
Lululemon Athletica
- Third Quarter 2022 Earnings Release at 4:05 p.m. ET; conference call at 4:30 p.m. ET
- Projected EPS: $1.96
- Projected revenue: $1.81 billion
Cramer said he bets Lululemon will beat Wall Street expectations in its final quarter.
Disclaimer: Cramer’s Charitable Trust owns shares of Costco and TJX.
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