The most important thing investors need to know about next week's trading is that the coronavirus will color everything, Jim Cramer cautioned his Mad Money viewers Friday.
There will be a ton of earnings coming out next week, but if the coronavirus is not contained, none of them might matter.
Moving to Tuesday, Cramer liked Home Depot (HD) - Get Report, Salesforce.com (CRM) - Get Report and Toll Brothers (TOL) - Get Report, but said to stay away from Macy's (M) - Get Report and Virgin Galactic (SPCE) .
Next, on Wednesday, we hear from TJX Companies (TJX) - Get Report, Etsy (ETSY) - Get Report and Square (SQ) - Get Report. Cramer was bullish on all three. He cautioned against owning Marriott International (MAR) - Get Report with the company's exposure to China.
Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Don't Become Immune to Risk
As long as the coronavirus is raging in China, investors need to be prepared for the next shoe to drop, Cramer warned viewers. If the experts are right, we still have a lot to worry about.
It's a little known fact that a full 80% of America's pharmaceuticals originate in China. These are the medications that Americans rely on, and in the coming weeks, they'll be running out, leading to shortages and price gouging.
Cramer said this sad state of affairs was shocking to discover and has been building for decades, as drug makers favored lower prices over supply chain security. No one ever thought that the Chinese economy could go dark for weeks at a time, but now it is.
Medications are some of the most important imports from China, but it's certainty not the only industry that will be adversely affected as the coronavirus spreads.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
There's been a lot of turmoil among the social media stocks recently, and Cramer told viewers it all comes down to expectations.
When Facebook (FB) - Get Report reported in January, the company delivered a smaller-than-expected earnings beat with increased spending that sent shares lower by 10%. Shares of Snap (SNAP) - Get Report plunged 15% after the company reported that it too was investing into its platform.
But then there was Twitter (TWTR) - Get Report, which like Facebook and Snap, is also investing heavily to make its platform better. Shares of Twitter were rewarded, as was Pinterest (PINS) - Get Report.
Cramer said the difference in how these stocks reacted to more spending and disappointing earnings was in the expectations. Wall Street had high expectations for Facebook and Snap that were not met, but low expectations for Twitter and Pinterest which were exceeded.
He said Facebook shares are cheap at just 19 times earnings and he'd be a buyer of Snap at these discounted levels. He was also bullish on Twitter, which continues to improve itself, and with Pinterest, a company that is also growing its top line.
Executive Decision: Proofpoint
For his "Executive Decision" segment, Cramer spoke with Gary Steele, chairman and CEO of Proofpoint (PFPT) - Get Report, the cybersecurity company that beat on earnings when it last reported, but offered analysts only tepid guidance for the remainder of the year.
Steele said people are being defrauded of millions of dollars every day and the cyber criminals are winning the battle. That's because attacks are getting are getting more sophisticated, using more elaborate social engineering. Even the coronavirus is being used as a lure because people are desperate to learn more.
Steele added that the cybersecurity business is not just a monolith, it's made up of many discreet niches and Proofpoint is a leader in their niche, which continues to be very active. Instead of competing with other security companies, Proofpoint actually partners with them, sharing information and ensuring that even today's sophisticated and targeted attacks are stopped as quickly as possible.
As the November election gets closer, Steele said they expects to see a marked rise in geopolitical targeting and attacks from individuals, companies and nations alike.
In his "No Huddle Offense" segment, Cramer circled back to Symantec, a company he recommended 15 months ago. Symantec now trades as NortonLifeLock (NLOK) - Get Report, and under the leadership of CEO Rick Hill, has now delivered a 65.7% return since that recommendation.
At the time, Symantec was a sleepy, old-school computer security company. But Cramer said he recognized that Rick Hill was a winner and could turn the company around. That's exactly what happened and shareholders were rewarded a $12 a share special dividend in the process.
During the past 15 months, the S&P 500 only delivered a 26.5% gain, Cramer concluded, which is why he still recommends buying individual stocks instead of only index funds. He reiterated his recommendation of NortonLifeLock, saying the company still has more room to grow.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening:
Aecom Technology (AECOM) : "Everything thinks this one will be acquired, but I don't want to overstay my welcome."
Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in HD, CRM, FB.