1670032703 Cramers week ahead Markets need strong jobs and tamed inflation

Cramers next week: Markets need strong jobs and reining in inflation

CNBC’s Jim Cramer told investors Friday that stocks could see another strong week of trading given the right economic conditions.

“As the year progresses, there will be more and more focus on the holidays. At the moment the forecasts are bleak – too many countercurrents. But if the labor market stays strong and inflation stays tame, we could have another very good week ahead,” he said.

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Stocks closed for the week on Friday, marking the first time since October that the three major indices posted consecutive weekly gains.

Markets were volatile this week as investors digested Federal Reserve Chair Jerome Powell’s suggestion that the central bank may soon start slowing the pace of interest rate hikes and hot payroll and jobs data.

Cramer said he was keeping an eye on the University of Michigan’s producer price index and consumer sentiment index due to be released next week and was concerned the mood might be too cold.

“Right now we need a boost, a big boost, if only to save Christmas for retailers,” he said.

He also previewed next week’s paytable. All earnings and revenue estimates were provided by FactSet.

Tuesday: AutoZone, Toll Brothers, SentinelOne

AutoZone

  • Q1 2023 results release at 6:55am ET; Conference call at 10 a.m. ET
  • Estimated earnings per share: $25.3
  • expected turnover; $3.86 billion

He said the stock has been one of his favorites for years.

Great brothers

  • Q4 2022 results release at 4:30pm ET; Conference call Wednesday at 8:30 a.m. ET
  • Estimated earnings per share: $4.01
  • Estimated sales: $3.17 billion

While real estate stocks that are entering a tightening cycle that could trigger a recession are generally discouraged from buying, Powell’s recent comments could make the stock an interesting investment, Cramer said.

SentinelOne

  • Earnings release Q3 2023 after close of trading; Conference call at 5:00 p.m. ET
  • Projected Loss: Loss of 11 cents per share
  • Estimated sales: $180 million

He said he’s not sure when the stock will bottom.

Wednesday: Campbell Soup, Ollie’s Bargain Outlet Holdings, Brown-Forman, Lowe’s

Campbell Soup

  • Q1 2023 results release at 7:30am ET; Conference call at 8 p.m. ET
  • Estimated earnings per share: 88 cents
  • Estimated sales: $2.45 billion

He said the company was “reinvented” by CEO Mark Clouse.

Ollie’s Bargain Outlet Holdings

  • Q3 2022 earnings release ahead of the bell; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: 40 cents
  • Estimated sales: $429 million

The company is a “great” bargain store, which means its quarter should post stellar results, Cramer said.

Brown Forman

  • Q2 2023 results release at 8:00 am ET; Conference call at 10 a.m. ET
  • Estimated earnings per share: 55 cents
  • Estimated Revenue: $1.08 billion

Cramer pointed out that spirits sales tend to do well in a recession, which is good news for the Jack Daniel’s distiller.

Thursday: Broadcom: Costco, Lululemon Athletica

Broadcom

  • Q4 2022 results release at 4:15 p.m. ET; Conference call at 5:00 p.m. ET
  • Estimated earnings per share: $10.3
  • Estimated Revenue: $8.90 billion

The semiconductor company will report great earnings even as cloud growth slows, Cramer predicted.

Costco

  • Q1 2023 results release at 4:15 p.m. ET; Conference call at 5:00 p.m. ET
  • Estimated earnings per share: $3.12
  • expected turnover; $58.36 billion

While the retailer’s quarter is likely to be solid, TJX is the better bargain stock, he said.

Lululemon Athletica

  • Q3 2022 results release at 4:05 p.m. ET; Conference call at 4:30 p.m. ET
  • Estimated earnings per share: $1.96
  • Estimated Revenue: $1.81 billion

Cramer said he’s banking on Lululemon beating Wall Street’s expectations last quarter.

Disclaimer: Cramer’s Charitable Trust owns shares of Costco and TJX.

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