Home / Business and Economy / Cramer Bullish on Home Depot as Shares Defy Housing Slump
Cramer Bullish on Home Depot as Shares Defy Housing Slump
9 Sep
Summary
- Home Depot shares gained 7.5% YTD despite housing market constraints
- Cramer expects Home Depot to benefit from lower mortgage rates and housing boom
- Cramer sees Home Depot as a smart buy right now, citing tariffs and onshoring
In the current economic climate, home improvement retailer The Home Depot, Inc. (NYSE:HD) has emerged as a surprising winner. According to the analysis, Home Depot's shares have gained 7.5% year-to-date, despite the housing market being constrained by high interest rates.
However, the tide may be turning for Home Depot. Cramer, a respected financial analyst, believes that the company is set to benefit from a potential cut in interest rates. He explains that when rates were cut a year ago, the long-end of the yield curve actually went down, which would include mortgage rates. This, in turn, could lead to a "gigantic explosion of housing starts," which would be a boon for Home Depot.
Cramer's optimism for Home Depot extends beyond the interest rate outlook. He notes that the company has already weathered the impact of tariffs, and is now poised to benefit from the trend of onshoring. As a result, Cramer sees Home Depot as a smart investment opportunity, urging investors to buy the stock right now.
Overall, the analysis paints a bullish picture for Home Depot, with Cramer's insights suggesting that the company is well-positioned to defy the broader housing market slump and deliver strong returns for investors in the coming months.
