We recently published a list of Jim Cramer Discusses These 8 Stocks & Says Trump’s Focused On His Goals And Not The Market. In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer mentioned that selling due to pre-market futures activity is not a wise move. He added that President Trump’s approach of making big announcements on the weekends also leads to traders positioning themselves:
“But look, we’re looking at the futures, again, if people want to go sell everything because they see the futures, that historically is not been a really great way to go. It is Friday, we have a lot of news that always comes out on the weekends these days. Again, if you do not like Trump, you don’t want to own stocks. If you like Trump, you’re probably thinking this is a pretty interesting level.”
Cramer added that the Trump administration’s announcements and decisions are geared towards the President’s objectives and goals and not the stock market. “And I think that it’s not like you’re going to hear from the administration you know what we look at the stock market we’re going to go easy. That’s not their thing,” he said. “Their thing is to say we’ll even sacrifice the stock market to get what we want and then we’ll look to see what happens. But I have no illusions,” he added.
Commenting on the recent price action of the stock of the world’s leading AI GPU designer, he outlined that the stock “is pulling down all the tech. And that’s why I think if you didn’t have such bad numbers in housing, and bad numbers . . the tape is very negative. But I can make the case that right now if you look away from tech there’s some real bargains here. It’s just we keep losing bull markets.”
The CNBC host also commented on how it’s difficult to publicly make predictions about the stock market and whether there’s time to buy stocks:
“I said last night in my close, that if you came on our air, and you said to buy ahead of April 2nd, and the market gets killed on April 3rd, you will look like the biggest idiot in the world. Because there’s such a thing called YouTube and they can run you endlessly. So you can’t stick your neck out. Do I ever want to own some stocks? But I’m not sticking my neck out, because I don’t want to be constantly bombarded by YouTube which just says, you know what, this is a good opportunity because it makes you too much sound like buying stocks ahead of the Great Depression. There’s plenty of time to buy stocks. There’s plenty of time. But I do think that we’re in a void ahead of April 2nd. Then we have to look at it. Does that mean it can just go down endlessly? I don’t know Sarah, it’s conceivable.”
As for the tariffs, one reason why markets are roiled is because of uncertainty. According to Cramer:
“If the government is going to put through tariffs, no one will know what to do. And I think that’s part of the chaos. It’s not like they figured out how to be able to make it so that if you’re coming in from Mexico, you know how to pay. If you’re flying in from China, you know how to pay. I think the government right now should be working on schedules. And figuring out who is going collect it.”
Finally, he urged viewers to not give up. Commenting on markets being down for the week and equal weight delivering higher returns than market weight, he shared:
“If you have a broadening out, that gets away from Mag 7, you’re going to have a healthier economy. People aren’t used to that. People are so used to stocks going higher. . . .But the fact is the vast majority of stocks are doing okay, it’s just that you don’t see it because we’re stuck in an index that has heavy tech tells me, you know look, don’t give up, don’t give up. Giving up may, you may, you may get hit for another five to seven percent as we get to April 2nd.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on March 21st.
For these stocks, we also mentioned the number of hedge fund investors. 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 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.”
Overall, HD ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HD as an investment, our conviction lies in the belief that some 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.