We recently published 13 Stocks That Crossed Jim Cramer’s Radar. The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer discussed.
The day was an important one for The Home Depot, Inc. (NYSE:HD)’s shares as far as Jim Cramer goes. During the show, he spent quite some time debating the firm’s merits with co-host David Faber. The spirited discussion kicked off after Cramer revealed that he had issued a Buy for The Home Depot, Inc. (NYSE:HD) to his club members. The CNBC TV host has regularly discussed the firm over the past couple of months, and his recommendation came after an October appearance when he called The Home Depot, Inc. (NYSE:HD) “the worst acting stock in the Charitable Trust.” Yet, a couple of days later, in an appearance on October 30th, Cramer called The Home Depot, Inc. (NYSE:HD) his “go-to stock.” In this show, Cramer maintained that The Home Depot, Inc. (NYSE:HD) was a top stock with respect to interest rate cuts:
“[On earnings] Right now, this is, I’ve just issued a Buy to club members. I’ve been holding off since March, fearing this. Not necessarily the bottom, it certainly leaves some room. But this is the premier company to buy when you get rate cuts. We had some interesting. . .I just got to tell you, this economy, I know that the hiring seems a little weaker, and some people say prices are still too high, the President’s actually doing something about it. . .beef, bananas, coffee. . .I have to buy it because this is what the playbook says to do. When everyone throws it up, it’s the premier company involving this, you have to take the other side. Look, do I want to? What’s more painful? What’s more painful than buying this?
“[After David Faber commented that there hasn’t been revenue growth for years since COVID since people were doing their at home projects] We’re at a 40 year low in housing. They’re supposed to do well?”
“[Carl Quintanilla discussed ICE raids and Home Depot’s silence] I guess what I’m saying is, we do not know when ICE is going to stop targeting them. We do not know when housing’s going to turn around. But we do know, and I know David, you’re right that it’s not been a great buy for a long time.
“[Faber reiterated that revenue growth has not been significant for years potentially due to COVID uptick and the stock trades at a high multiple] They don’t put up a lot of stores, they are the best, no one except for maybe Marvin Ellison of Lowe’s, would disagree that they are the best. . .
“[When Faber wondered what does it say about consumer when Home Depot talks about uncertainty and pressure in housing] You have tariffs on a lot of companies, they have white goods that have been hurt because of the tariffs. . .but look, if I think the tariffs may be removed, and I think that the Fed will cut, I don’t want to necessarily go buy Toll Brothers, as much as I like Toll Brothers, I’d buy Home Depot. So I’m taking the other side of this trade, knowing that it looks horrible. Because sometimes the bottom is when it looks horrible, not when it’s at the top.”
“I don’t make one big statement buy I haven’t done that since 1981 when I had my head handed to me on a Delta buy. [David asked if he was buying a little] Yeah, exactly. And then I’ll buy more. That’s how I do it!. . .I’m taking down 25 shares of Home Depot, right, 25 shares. . .
“Yeah look I think that you want to buy this. This is historically a stock that you want to buy when things are terrible in housing. It’s got a 2.6% yield. I think it could go all the way down to a 3%. You want a leg into it, and again, we didn’t buy any since March, I just think it’s a fantastic company and Ted Decker’s great. If you buy this when housing’s great, you’re going to lose money. If you buy this when housing’s really horrible, you’re going to make money but you’re gonna have some pain first.”
While we acknowledge the potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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While we acknowledge the risk and potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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