6. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders In Q4 2024: 88
The Home Depot, Inc. (NYSE:HD) is a building products retailer that is one of the most commonly discussed stocks on Cramer’s show. Not only does he believe that the firm is a dominant player in its market, but also wants the shares to go up to $370. The Home Depot, Inc. (NYSE:HD) is the stock to buy if one believes that America will do well, according to Cramer. He has also dismissed investor concerns about weak guidance given during the firm’s latest results. Here’s what he said about The Home Depot, Inc. (NYSE:HD) this time around:
“Yesterday Ted Decker, from Home Depot, now Home Depot, people could say has a lot tariff problems, Home Depot, people could say a lot of higher interest problems. But he’s just not saying that at all. And I think he’s accentuating the positive. I thought that Raj, if you go over the call, the call was. . .positive. Okay. And I spoke with Raj at length yesterday, and we both were remarking about how much money they made despite the revenues. That’s the way you think of this. I mean, people are saying that it’s a risky stock. It was risky a 100 points ago. Was Home Depot risky at 350? It was risky at 425. Somebody has to start thinking about, you know what, these stocks have come down in advance about our negativity and what we talk about. And yes there could be another ten percent decline. But can you stay [inaudible] forever because 15% of the economy is going to have a higher tariff? I can play the game, and you can play the game. We can sit here and talk about how Nike missed the quarter, missed the quarter badly or we can say, do I want to pay 65 for a core franchise that is in half, because we had a seriously bad CEO, and now we have a good CEO and he will be able to try. . .”
“Yes, look, there’s two streams of income that Home Depot has. One is renovation and remodelling and that’s playing out cause we don’t have a lot of housing turnover. . .and the other revenue stream is basically what I regard as taking advantage of the fact that your home has increased 50% in value since 2018. Now that the negative says, oh my, homes are therefore too expensive. A positive person would say, that means that you think mentally that you’re not expensing what you’re putting in your housing, it’s capital improvement. Making your home worth even more. So it was a very positive story. Now you could say well listen, Home Depot’s an inherently positive company. I say what does that have to do with it? So number one home improvement company in the world. I’m gonna listen to him. I’m gonna take him at his world.”
“Now remember, Home Depot in 2007 to 2009 a lot of people thought was going to go under. They bought an amazing amount of stock during that period. It was at 18 dollars, look at [where] the stock is now. 354 dollars, good or bad, stock has increased. . .since 1982, good or bad. But it’s so easy to get caught up right now. A lot of this because I think there is a definitive hatred of President Trump. That is not talked about at all. Because maybe people are afraid. Look, I’m not afraid of him, and I don’t feel the hate. I don’t feel that this is that bad. Why? Because our partners have been taking advantage of us for years and years. He’s trying to straighten that out. But while we see 12 to 15 percent of the economy being taxed, Sarah, we see a level of gloom that is just not equal to what business people are telling me. It’s unfortunate that Nike reported at the same time that FedEx reported.”
