Home Depot

Given the market's extreme and distressing gyrations over the past week, you'd be forgiven for thinking corporate earnings had been, on the whole, disappointing. But that's not actually the case: A large majority of public companies have performed quite well.

Next week brings more earnings reports from big-name companies, including several home improvement giants, a couple of "good enough" computer makers, penny-pinching discount masters, and office supplier Staples -- whose results might stand as an indication of the broader economy's health.

After Lumber Liquidators cut its full-year revenue forecast Thursday, investors took the nation's largest hardwood flooring specialist to the woodshed. But while the short-term will be challenging, this highly profitable company still has a strong position and ample room to grow.

Over the last few years, Home Depot has expanded its retail stores aggressively, adding more than 200 outlets annually. However, the firm has recently embarked on a $1.1 billion program to improve its Web presence while dramatically reducing the number of new store openings to around 10 in 2011.

As the competition between home improvement heavyweights Lowe's and Home Depot intensifies, customer service is emerging as one of the key features on which they will need to innovate. Lowe's latest attempt is a new incentive program for customers paying with the store's credit card.

With Amazon eating up retail sales in the U.S., Best Buy has long looked like a questionable bet. But now, with its stock price depressed and a revitalized sales strategy, the big blue store is looking like a good -- and undervalued -- bet.

Major benchmarks have stalled after climbing by double digits during the previous two quarters. So what's an investor to do? Investment guru Jim Cramer has some tips on what you should avoid and where you'll find the best bets in the second quarter.