Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks

6. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders In Q4 2024: 70

Lowe’s Companies, Inc. (NYSE:LOW), along with Home Depot, is a dominant player in the American home improvement retail market. The firm’s shares have lost 10% year-to-date as it struggles in a weak market driven by high interest rates and pessimistic consumer sentiment. During its first-quarter earnings report in May, Lowe’s Companies, Inc. (NYSE:LOW)’s continued to struggle in the weak environment. It warned that consumers were not making expensive purchases and this trend could continue in the second quarter. Cramer commented on the broader weakness in the retail sector:

“By the way the retail group is total chaos today. . .Lowe’s is down. I thought Lowe’s had a good quarter.”

Cramer has discussed Lowe’s Companies, Inc. (NYSE:LOW) several times this year. Most of these have seen him analyze the firm simultaneously with its peer Home Depot. For instance, here’s what he said in March:

“Marvin Ellison, go[ing] back and forth with him, this was an excellent quarter. Particularly considering rates, although the rates have come down a little bit. And the lack of housing turnover which is typically been the key metric because when there’s housing turnover you go to Lowe’s, you tend to rehabilitate, you make it so you renovate. I was struck by the fact that the numbers were [inaudible] are improving. Because Lowe’s is of the [inaudible] of do it yourself. We had good pro numbers from Home Depot, good pro numbers from Lowe’s, something could be on here David. It is not as bad as feared. These two companies are excellent.

“. . and their [Home Depot] numbers were good, in this environment. Now you gotta look, if you looked at Home Depot, or this, I mean, look everyone was, there was a lot of short money betting against these. I think that when you have a stock that goes down like this you should rethink. But I liked, I liked them.

“I’ve always liked . . .ever since Marv came in. And the Home Depot team, Ted Decker, look these teams, remember these guys take a lot of share too from the mom’s . . .there’s still mom and pop hardware stores that they take. And remember, you’re betting against now they’re Christmas Season, which is going to be, the garden season. Appliances still bad every where.”