Jim Cramer Latest Portfolio: 10 Stocks to Watch in September

2. Home Depot Inc (NYSE:HD)

Number of Hedge Fund Investors: 86

When asked about Home Depot Inc (NYSE:HD), Jim Cramer revealed he bought some more shares of the company on the latest dip.

“Home Depot is good.”

The fundamental story behind Home Depot Inc (NYSE:HD) is strong.  According to data from Argus Research, about 75% of U.S. homeowners with mortgages are locked in below 4.5%. With rising inflation and high interest rates, people are keeping their homes and avoiding new purchases. That means their homes need repairs and fixes. That’s what boost Home Depot Inc (NYSE:HD) business.

Data also shows that about 70% of US homes are over 25 years old and need repairs and renovation. All of this fits well into Home Depot’s growth story.

Analysts believe Home Depot Inc (NYSE:HD) acquisition of specialty trade distribution company SRS Distribution was a master stroke from the company since it gave Home Depot a 17% market share in an industry with a total addressable market of $1 trillion. SRS is a residential specialty trade distribution company across several verticals serving professional roofers, landscapers and pool contractors. Home Depot Inc (NYSE:HD) is also investing in technology to improve business. Its pro intelligence tool and CRM platform that use data science for better insights and cross-selling opportunities are expected to boost sales and client relationships.

Polen Focus Growth Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q2 2024 investor letter:

“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: The Home Depot, Inc. (NYSE:HD), Meta Platforms, and AbbVie. With Home Depot, much of the quarter’s weakness came in April, as a higher-than-expected inflation reading caused investors to question the likelihood of imminent rate cuts in 2024. Given Home Depot’s sensitivity to interest rates, as it relates to home improvement projects, the stock sold off in the period.”