10 Stocks on Jim Cramer’s Radar

2. The Home Depot, Inc. (NYSE:HD)

Cramer commented that The Home Depot, Inc. (NYSE:HD) stock is one to own when the Fed cuts rates.

“And this is the quintessential stock to own when Feds cut rates. Always has been, always will be. I remember since 1988, I’ve been playing rate cuts with this one. I’m looking for the despot to raise numbers, given that we’re headed for a lower and straight environment. They could forecast the first real growth in years… The stock, which looks like it’s up, could head up much higher.”

Home Depot (NYSE:HD) is one of the largest and most recognized retailers in the home improvement sector. On November 12, the company reported its financial results for the third quarter, surpassing analyst expectations on both revenue and earnings. It achieved net sales of $40.2 billion, marking a 6.6% increase year-over-year.

While adjusted EPS was $3.78, reflecting a 4.3% decline compared to the same period last year, they still outpaced analysts’ estimates. The company’s performance was shaped by a combination of factors. On the revenue side, the normalization of weather patterns contributed to stronger sales in seasonal products and outdoor projects.

The company also saw a surge in sales due to hurricane-related demand, which provided a temporary boost. At the same time, the company’s ability to navigate supply chain complexities and improve operational efficiency was a key factor in driving growth.

Home Depot (NYSE:HD) updated its fiscal 2024 outlook, which now accounts for 53 weeks of operations. The company expects total sales to rise by around 4%, while comparable sales for the 52-week period are projected to decrease by about 2.5% compared to fiscal 2023. Additionally, the company plans to open approximately 12 new stores and anticipates a gross margin of roughly 33.5%.