CNBC’s Jim Kramer on Friday previewed next week’s earnings roster and advised investors to stick to companies that are profitable but affordable for investors to own.
“In this environment, you need to own companies that make goods and work profitably, but let’s also add stocks that are cheap in terms of earnings,” said the host, “Money Money.”
Even as the Fed seeks to reduce such high prices, “we have already seen signs that in many cases inflation is on the rise. Unfortunately for the rest of the economy as well,” he added.
Kramer said on Monday he would monitor Russia’s invasion of Ukraine and its impact on commodity prices. He added that he would look into 30-year Treasury bonds.
“30 years, not 20[-year], Where all steps will be taken after the Fed starts selling its bond portfolio You need to know that this 30-year sell-off indicates that much higher rates are on the way, “Kramer said.” Get ready for them. Higher long-term rates will probably hit Nasdaq, as we have seen today, not the Dow, which can hold up just because it’s full of real companies that fit my criteria. “
The Dow Jones Industrial Average rose 0.4% on Friday. The S&P 500 is down 0.27% while the Nasdaq Composite is down 1.34%. All three have refused for weeks.
Also on Kramer’s radar is an expected “red-hot reading” that will be published next Tuesday in the March Consumer Price Index.
“It will be unbearable and nasty until we see the peak in everything. Whatever the so-called consensus, it is almost always very low now, and so it will confuse the bondholders and put pressure on the stock market that day,” he said.
Kramer also previewed next week’s earnings slate and shared his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.
Tuesday: Albertson, Carmax
- Q4 2021 Release hours before earnings; Conference call 8:30 am ET
- Projected EPS: 64 cents
- Expected Revenue: 16.76 billion
Kramer said he expects great results from the Albertsons and is looking for an announcement, whether they are planning to go in person or publishing big buybacks or dividends.
- Hours before Q4 2022 earnings; Conference call at 9 am
- Projected EPS: $ 1.27
- Expected revenue: 7.5 billion
“This endless series of price increases is over, or that demand has waned … any signs that will strengthen my thesis that all used car companies have to sell,” Kramer said.
Wednesday: JP Morgan Chase, Bed Bath and Beyond, Blackrock, Delta Airlines
JP Morgan Chase
- Q1 2022 Earnings Release at 6:45 am ET; Conference call 8:30 am ET
- Projected EPS: $ 2.72
- Expected Revenue: $ 30.57 billion
“Every time the Fed raises the rate, these guys instantly become more profitable on a risk-free basis,” Kramer said.
Bed Bath and Beyond
- Q4 2021 income disclosure; Conference call 8:15 am ET
- Projected EPS: 4 cents
- Expected Revenue: $ 2.08 billion
“The question here is simple: will Ryan Cohen, the new big shareholder of Chewy and Gamestop fame, join the board and will the Buy By Baby business be sold to private equity? I think it’s all on the table and the stock goes up enough,” Kramer said.
- Q1 2022 Revealed hours before earnings; Conference call 8:30 am ET
- Projected EPS: $ 8.95
- Expected Revenue: $ 4.73 billion
Kramer said he was interested in hearing about how “individuals can vote on their index fund shares.”
- Q1 2022 Revealed hours before earnings; Conference call at 10 am
- Estimated loss: $ 1.30 loss per share
- Expected revenue: $ 8.74 billion
Kramer said he favors travel stocks but believes airlines are currently facing a tough sale “given how much money they could lose in a Fed-directed recession.”
Thursday: Goldman Sachs
- Q1 2022 earnings are released at 7:30 am ET; Conference call 9:30 am ET
- Projected EPS: $ 8.95
- Expected Revenue: 11.98 billion
“I’ve never seen such a cheap stock of Goldman Sachs.… I think you’re getting a fairly good chance of catching a bounce here, if not investing, because at the moment, it’s no surprise that Goldman’s first quarter was ugly,” Kramer said.