Next week's earnings all revolve around consumer spending, Jim Cramer told his Mad Money viewers Friday. But before you start buying what will likely be strong sales, consider where your favorite retail stocks have come from. Some stocks have already run big going into earnings, while others have a lot of catching up to do.
Cramer's game plan starts on Monday with two electric vehicle stocks, Lordstown Motors (RIDE) - Get Report and Fisker (FSR) - Get Report. Lordstown has come under fire for overpromising, but Fisker has a better story to tell.
Next, on Tuesday, the retail earnings start in earnest with Walmart (WMT) - Get Report, Home Depot (HD) - Get Report and Macy's (M) - Get Report, as well as game maker Take-Two Interactive (TTWO) - Get Report. Cramer was bullish on Walmart and Home Depot but felt it was still early for Macy's. He said Take-Two isn't going away anytime soon.
Wednesday we'll hear from Lowes (LOW) - Get Report, Target (TGT) - Get Report and TJX Companies (TJX) - Get Report, along with Analog Devices (ADI) - Get Report and Cisco Systems (CSCO) - Get Report in the tech sector. Cramer expected all of these results to be spectacular.
Then on Thursday, we'll hear from Kohl's (KSS) - Get Report, which has not been one of the best retail stories. Cramer was more upbeat on Ralph Lauren (RL) - Get Report and Petco (WOOF) - Get Report. Also reporting is Hormel Foods (HRL) - Get Report, which has run ahead of earnings, Applied Materials (AMAT) - Get Report and the best earnings of the week, Palo Alto Networks (PANW) - Get Report, as cybersecurity remains top of mind in lieu of recent attacks.
Finally on Friday, we'll hear from Deere and Co. (DE) - Get Report, which may not be fantastic if grain prices fall. Cramer was also skeptical with VF Corp (VFC) - Get Report and Foot Locker (FL) - Get Report, which has already seen big gains.
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Executive Decision: Constellation Brands
In his first "Executive Decision" segment, Cramer spoke with Bill Newlands, president and CEO of Constellation Brands (STZ) - Get Report and Donae Burston, founder of La Fete du Rose, one of the first companies to receive funding from Constellation's new minority-owned venture capital program.
Newlands said women and minorities in the wine and spirits business, and they hope to start changing that. Only 1% of venture funding went to black entrepreneurs, he said, a statistic that needs to change.
Burston said that many people don't drink rosé, but La Fete du Rose's mission is to make rosé more inclusive and broaden its appeal. The brand was started in 2019 and Burston plans on using the influx of capital to hire staff and increase production. He said it's very hard for small brands to break into the industry but with Constellation's help, they have a shot.
Executive Decision: Five9
Trollope said the market is red hot and Five9 is no longer having to convince people they need to move to the cloud, customers are just diving right in. Now is the time to rethink the customer experience, he said, and company after company is ditching the traditional phone tree for new cloud technologies.
Phone trees are just too limiting, Trollope noted, which is why the future is intelligent virtual assistants that use natural language to get you the information you need or route you where you need to go. Best of all, virtual assistants work via phone with voice or over text.
Customers are demanding better experiences, Trollope concluded, and there's a lot of growth ahead for Five9.
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Elliott Capital's Activism
When a talented activist investor starts asking for changes at a company, the smart thing to do is to listen. That's been the case with a number of recent deals involving Elliott Capital, which most recently took an interest in Duke Energy (DUK) - Get Report.
Cramer said when Elliott got involved with cell tower operator Crown Castle (CCI) - Get Report, management initially resisted. But over the next few months, they lowered their capital spending, as Elliott suggested, and made other changes that reinvigorated the stock.
Why Cramer Recommends Staying the Course
In his No-Huddle Offense segment, Cramer reminded viewers that it's always darkest before the dawn. And when you're too pessimistic, you often miss out on big gains.
Early in the week, things looked bleak indeed. Inflation was on the rise, the consumer price index wasn't as expected and the Colonial Pipeline was shut down by a ransomware attack. But now, just days later, lumber prices have fallen 7%, the pipeline is back in operation and the flood of new IPOs that were overwhelming demand has slowed to a trickle. And that's not even counting the news that the CDC says vaccinated people can ditch their masks.
The problem with selling when things get ugly is that there's often not enough time to get back in, Cramer said. If you sold on Tuesday or Wednesday of this week, that's likely what you found Thursday and Friday.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, WMT.