We recently published a list of Jim Cramer Talked About 7 Stocks & Stagflation Fears. In this article, we are going to take a look at where Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer talked about.
On Friday, Jim Cramer, the host of Mad Money, shared his thoughts on the events of the week, especially reflecting on how fear can be easily spread by discussions about potential tariffs. He pointed out that much of the day was filled with fear-mongering over the possibility of tariffs impacting anyone who buys or sells imported goods.
“You saw it all morning, although fortunately at least on our hour, we decried the negativity and suggested that perhaps we should take a glass-half-full approach. I’m in the minority.”
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He noted, “The market can’t get to where it might have to go, which is conceivably lower because there are many people who still believe that the tariffs will mean nothing.” Cramer mentioned that while it will be worse than that he does not believe the situation is as catastrophic as some might fear.
“Then there are other people, chiefly I think traders, who decided that the administration’s slapdash approach to these tariffs has created so much confusion that we could be headed for a stagflation economy and nobody hates stagflation more than Wall Street.”
In such an environment, Cramer noted, only short sellers would stand to profit. That said, Cramer mentioned that he does not think the direct consequences of the tariffs will be as severe as some expect. He believes that most people won’t feel much of a difference and that it won’t trigger another round of price hikes like those seen during the pandemic.
“In the end, what I saw here is bigger than a head and shoulders pattern…. The charts can’t stop it. The bears can’t stop it. But the palpable sense of dread that analysts and some of my compadres in the media can keep you out of it, they can. What can I say? Journalists’ fear mongering has done more to keep you out of big, long-term winners than any other force.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 21. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
The Home Depot, Inc. (NYSE:HD) was commented on during the episode as he said:
“Still, to circle back to what we saw this week, it would be easy to say that we saw Home Depot doing great.”
Home Depot (NYSE:HD) is a retailer specializing in home improvement, offering products such as building materials, home décor, lawn and garden supplies, and maintenance items. The company also provides installation services for different home features and rents out tools and equipment. Cramer has been a fan of the company for a while and in February, he said:
“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. 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.”
Overall, HD ranks 5th on our list of stocks that Jim Cramer talked about. While we acknowledge the potential of HD as an investment, our conviction lies in the belief that 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.