Jim Cramer Is Focused on These 15 Stocks This Week

3. Lowe’s Companies, Inc. (NYSE:LOW)

Cramer said that Lowe’s Companies, Inc. (NYSE:LOW) is similar to Home Depot and performs well when the Fed cuts rates.

“Now Lowe’s is another terrific story. It’s a home improvement company, that’s one of the best there is. We have known Home Depot for the Charitable Trust, but Lowe’s has a very similar story and it’s one that tends to do very well when the Fed’s cutting interest rates.”

Lowe’s (NYSE:LOW) is a U.S.-based home improvement retailer offering a wide range of products for construction, maintenance, repair, remodeling, and decorating. The company reported third-quarter earnings on Tuesday, that exceeded analysts’ expectations for both earnings and revenue.

The company posted adjusted diluted earnings per share of $2.89, beating forecasts. Total revenue reached $20.2 billion, surpassing estimates, though it marked a 1.5% decline compared to the previous year. A 1.1% drop in comparable sales was attributed to weaker demand in the DIY segment.

However, Lowe’s (NYSE:LOW) saw significant growth in online sales during the quarter, which helped offset the decline in DIY sales, particularly in large-ticket items. The company also experienced high single-digit sales growth among professional contractors, driven by its targeted offerings and successful loyalty programs. In the quarter, the company bought back around 2.9 million shares for $758 million and paid out $654 million in dividends.