CNBC’s Jim Cramer on Thursday mentioned {that a} attainable upcoming slew of earnings estimate cuts from analysts may create a sell-off and a possibility for traders to do some shopping for.

“Over the subsequent few weeks, earlier than earnings season will get rolling, I anticipate the analysts to hit us with some preemptive estimate cuts whereas extra firms hit us with destructive preannouncements,” he mentioned.

“That is going to be unhealthy for the averages, however as soon as the sell-off hits and we recover from the estimate cuts for 2022 and 2023, that is it. That is after we could have not a tradeable backside like this one, however an investable one,” he added.

The “Mad Cash” host’s feedback come after a turbulent earnings season roiled by inflation noticed firms falling in need of Wall Road expectations.

Cramer mentioned that he believes analysts’ consensus earnings estimates for the shares within the S&P 500 are too excessive, and they should come down as a result of markets do not backside except unhealthy information is baked into inventory costs.

“They’re predicting 8% development, adopted by 11% subsequent yr. I discover that tough to consider. Eight p.c to eleven p.c earnings development is mainly what you’d anticipate in a mean yr,” he mentioned.

He identified that there have been a number of firms in current weeks that reported nice quarters however disappointing steering.

“You had these actually nice quarters, however they’re saying issues are getting weaker. Individuals like them as a result of they assume the estimate cuts are lastly completed. I am undecided,” he mentioned.

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