We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where Lowe’s Companies, Inc. (NYSE:LOW) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
READ ALSO Jim Cramer on Microsoft and Other Stocks and Jim Cramer’s Best Performers List: Top 10 Stocks
Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 and listed the stocks in the order that Cramer mentioned them.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A family excitedly browsing through the aisles of a home improvement retail store.
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.
Overall LOW ranks 3rd on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of LOW 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 timeframe. If you are looking for an AI stock that is more promising than LOW 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.