Amid the market’s new-found stability and less volatile environment, Jim Cramer could finally focus on his strong suit—bottom-up analysis of stocks.
“This less brutal backdrop has allowed us to analyze individual stocks and make judgments the way we used to before the beginning of this miserable year,” the “Mad Money” host said.
Cramer attributed the positive backdrop to the Federal Reserve putting itself on hold, as well as China and oil finally behaving itself.
So despite a weaker overseas market, Cramer has retail earnings on his radar as consumers will have plenty of spare change to spend thanks to better employment and cheaper gasoline
Earnings & management can finally matter again
Monday: Allergan, Fitbit
Allergan: Though his charitable trust has a substantial position in Allergan, it has been difficult to own any pharmaceutical company. The only stock that seems to have escaped is Johnson & Johnson, which Cramer thinks has become investors’ new favorite drug stock.
Fitbit: Cramer is adamant that this stock is a play on health and wellness, though he is interested to see what happens when it reports.
“I have to acknowledge that I have been on the wrong side of the trade in my affection for both the company and the stock,” Cramer said.(Tweet This)
Read more from Mad Money with Jim Cramer:
Cramer Remix: Why Apple is a hot value play
Cramer: Let the bad times roll for stock prices
Cramer: A once red-hot play ready for investing
Tuesday: Macy’s, Home Depot
Retail has been a mixed picture lately with hard goods companies doing well and softer goods companies that have an emphasis on fashion doing poorly. This was evident in the guide down from Nordstrom and disappointing numbers from VF Corp.
Macy’s: Cramer is not positive about this stock ahead of the quarter, as it is too similar to Nordstrom and sells too much product from VF Corp.
Home Depot: Cramer thinks this company will have a much better story to tell. He thinks it could raise estimates and confirm that stronger employment and household formation are bringing more customers to its stores.
Wednesday: Lowe’s, Salesforce
Lowe’s: Cramer isn’t sure if this competitor to Home Depot will have positive news to report, in part because of its acquisition in Canada that seemed confusing. He recommended sticking with Home Depot.
Thursday: Sears, Kohl’s, Domino’s Pizza, Palo Alto Networks
Kohl’s: If this stock is hit after a weak Macy’s quarter, Cramer recommended to buy Kohl’s ahead of its results.
“I just think Kohl’s simply isn’t this bad. Sears, on the other hand, is indeed bad,” Cramer said. (Tweet This)
Friday: J.C. Penney, Footlocker
J.C. Penney: Cramer is worried about this one. If apparel is bad for everyone else, then how could J.C. Penney stand out from the crowd? He thinks the business is just too hard. While some speculators love this stock, Cramer considers it one that doesn’t need to be owned.
Foot Locker: Footwear, however, is one of the strongest sectors out there. So if Foot Locker gets hit ahead of the quarter, Cramer thinks it is worth buying.
“Next week we are all about earnings, most of them retail, and I think you have to pick your spots,” Cramer said.