Take any chance to sell stocks in busy earnings week

On Friday, CNBC’s Jim Cramer advised investors to grab any chance to sell stocks next week as the busy earnings season continues.

“The market is dominated by tick, tick, tick bonds, oil and the dollar. So remember, if we have a big day like yesterday, it’s a chance to make a little [selling] because there will probably be no follow-up,” he said.

Cramer’s comments come after stocks fell on Friday to end a volatile week of trading, just a day after the market snapped a six-day losing streak with a historic intraday reversal.

He also previewed next week’s earnings list. All earnings and income estimates are courtesy of FactSet.

Monday: Bank of America

  • Third Quarter 2022 Earnings Release at 6:45 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: 78 cents
  • Projected revenue: $23.54 billion

Cramer said he expects the bank to return a big number, but that might have no effect on the stock if bonds, oil or the dollar go haywire on the same day.

Tuesday: Goldman Sachs, Johnson & Johnson, Netflix

Goldman Sachs

  • Third Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $7.75
  • Projected revenue: $11.42 billion

Calling the stock “crazy cheap,” Cramer said he was looking for a strong result from the company in its final quarter.

Johnson & Johnson

  • Release of third quarter 2022 results between 6:25 a.m. and 6:40 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $2.48
  • Projected revenue: $23.36 billion

The title remains one of his favorites, Cramer said.

netflix

  • Third Quarter 2022 Earnings Release at 4:00 p.m. ET; conference call at 6 p.m. ET
  • Projected EPS: $2.14
  • Projected revenue: $7.84 billion

He said he expected to hear more about the company’s new ad-supported tier and was confident the company would roll it out without going overboard with the number of ads.

Wednesday: Procter & Gamble, Tesla, IBM, Lam Research

Procter & Gamble

  • First Quarter 2023 Earnings Release at 6:55 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.55
  • Projected revenue: $20.35 billion

Shares of the company will rise even if the quarter is bad, as many short sellers are betting against it, Cramer predicted.

You’re here

  • Release of third quarter 2022 results between 4:05 p.m. and 5:00 p.m. ET; conference call at 5:30 p.m. ET
  • Projected EPS: $1.01
  • Projected revenue: $22.14 billion

He said buyers would likely support the company’s stock regardless of the quarter.

IBM

  • Third Quarter 2022 Earnings Release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $1.79
  • Projected revenue: $13.53 billion

It’s unclear if the company will be able to post results that will excite the market, Cramer said.

Research

  • First Quarter 2023 Earnings Release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $9.58
  • Projected revenue: $4.93 billion

“If Lam says they’re seeing reductions similar to what we heard from Applied Materials, AMAT, this week, then everyone in semiconductors is going to have another downward move,” he said.

Thursday: AT&T

  • Third Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: 61 cents
  • Projected revenue: $29.84 billion

Cramer said while he hopes AT&T doesn’t have a disappointing quarter, he’s skeptical of the company’s ability to pull it off.

Friday: Verizon

  • Third Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.29
  • Projected revenue: $33.78 billion

Verizon’s stock performance suggests the company is struggling due to competition from T-Mobile, Cramer said.

Disclaimer: Cramer’s Charitable Trust owns shares of Johnson & Johnson and Procter & Gamble.

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