Jim Cramer Reviewed 22 Stocks, Including Home Depot and Caterpillar, After the Relief Rally

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9. RH (NYSE:RH)

RH (NYSE:RH) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. A caller asked for Cramer’s thoughts on the stock long-term, and he replied:

Okay, so… here’s the problem. Look, I like RH. I love going there. I know Gary Friedman, but I also like a good balance sheet, and it no longer has a good balance sheet. And I don’t recommend stocks on this show with balance sheets that I find questionable because that always in 21 years has come back to hurt me, always. So the answer is I can’t recommend it as much as I like their stuff.

RH (NYSE:RH) is a retailer and lifestyle brand that provides furniture, lighting, textiles, bathware, decor, and outdoor and children’s furnishings. Cramer showed a pessimistic sentiment toward the stock during the April 1 episode, as he said:

Finally, because we need rate cuts to sustain this rally, I would’ve liked to see the home builders rally, but other than D.R. Horton, we’re just not getting the pin action that we need. Remember, housing punches above its weight class in the economy because of all the accoutrements that go with a home sale, including RH, by the way, which was down a cool 27 points or 19% thanks to a bad quarter last night. RH has a mountain of debt, $2.4 billion. It missed the quarterly estimates and bought back a lot of stock at higher prices. It’s a suboptimal situation.

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