Jim Cramer’s Game Plan: 17 Stocks in Focus

6. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 88

While Cramer noted the possibility of The Home Depot, Inc. (NYSE:HD) reporting a soft quarter, he also mentioned the benefit of rebuilding activities after storms.

“Tuesday morning’s big. Alright, we own Home Depot for the Charitable Trust and we wanna build a large position ahead of eventual rate cuts. And as I said yesterday on our monthly conference call, we expect a soft quarter because of weak housing but the company will benefit from the need to rebuild after major storms, both in the Southeast and the fires in Los Angeles.”

Home Depot (NYSE:HD) is a home improvement retailer offering a wide range of products, including building materials, décor, and maintenance items, along with installation and tool rental services, catering to both homeowners and professionals in the construction and renovation industries.

Following Home Depot’s (NYSE:HD) third-quarter earnings report, Carillon Tower Advisers stated the following regarding the company in its Q3 2024 investor letter:

“While Home Depot, Inc.’s (NYSE:HD) recent reported earnings were somewhat tepid, the market seems to be pricing in an inversion of the company’s sales, driven by lower interest rates. Home Depot reported its seventh consecutive quarter of same-store sales declines, giving back substantial gains that it enjoyed during the pandemic. High mortgage rates have also put a damper on existing home sales. People typically spend the most on home repairs and improvements in years when they buy or sell houses, often conducting both transactions in the same year.”