Technology stocks rose on Friday to end the week on a high, but CNBC’s Jim Cramer expects further disadvantages in the technology cohort as investors continue to change their high-growth names.
“Like it or not, the shares are in line with the bond market now,” said the host of “Mad Money”.
As bond rates rise amid the first signs of economic recovery, investors are shunning risky growth stocks for cyclical stocks, especially bank and industrial stocks that have underperformed, Cramer said.
The high-tech Nasdaq Composite has fallen in recent weeks and remains 7% below its high of about a month ago. The technology rotation for value stocks, however, will not last forever, said Cramer.
“Either technology stocks are too low … or long-term interest rates are too high. Until that happens, the rotation will continue to unfold,” he said. “We are not there yet, but I am confident that we will get there eventually, because that is what always ends up with these types of vicious spins.”
Cramer revealed what is circulating on his calendar next week. Corporate performance projections are based on FactSet estimates:
Tuesday: GameStop, Adobe
- Release of fourth quarter results: after the market; conference call: 5 pm
- Projected EPS: $ 1.35
- Projected revenue: $ 2.21 billion
“The bulls hope to learn more in this call about [Ryan] Cohen’s plan when the company reports, and if there is anything good about those results, well, I hope to see a ton of purchases the next day, “said Cramer.
Adobe
- Earnings release for the first quarter of 2021: after the market; conference call: 5 pm
- Projected EPS: $ 2.79
- Projected revenue: $ 3.76 billion
“Unfortunately, the results are less important than the state of the Wall Street fashion show,” he said. “If Adobe reports a great quarter and rates are skyrocketing that day, with 10-year yields approaching 2%, then profit will not matter.”
Wednesday: RH, GrowGeneration, General Mills
- Release of fourth quarter results: after the market; conference call: 5 pm
- Projected EPS: $ 4.73
- Projected revenue: $ 797 million
GrowGeneration
- Release of fourth quarter results: after the market; conference call: Thursday, 9 am
- Projected EPS: 7 cents
- Projected revenue: $ 61.5 million
“You rarely hear these two mentioned in the same sentence, but now they represent the most interesting parts of retail,” said Cramer of HR and GrowGeneration.
“I suspect that both will have excellent quarters,” he said. “Home furniture is the most popular part of retail shopping at the moment, as we saw in the incredible neighborhood that Williams-Sonoma just delivered, and the culture of cannabis … [has] it has been an unstoppable force as state after state embraces legalization. “
General Mills
- Earnings release for the third quarter of 2021: before the market; conference call: 9 am
- Projected EPS: 84 cents
- Projected revenue: $ 4.45 billion
“I like this as a way of measuring the temperature of the pantry’s stocks,” said the host. “I think the reaction will be lukewarm, but then again, Smucker has positively surprised and I like Hormel a lot. So, let’s hear it.”
Thursday: Darden Restaurants
- Earnings release for the third quarter of 2021: before the market; conference call: 8:30 am
- Projected EPS: 68 cents
- Projected revenue: $ 1.61 billion
“Did you know that we have 150,000 [restaurants] that closed? This means that the survivors must be in an incredible position, which is why I hope they will crush the numbers, “said Cramer of Darden.” The shares had a great run, but I think the scarcity value of the shares and the last man – the thesis makes it attractive. “
Disclosure: Cramer’s charity fund has shares in Facebook, Amazon, Goldman Sachs, an organ of JPM Chase and Wells Fargo.
Disclaimer of Liability
techQuestions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to dive deep into the world of Cramer? Hit him!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? [email protected]