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Cramer's Lightning Round: Home Depot is a Buy, Despite Analysts' Fears

AInvestFriday, Jan 3, 2025 7:05 pm ET
3min read


Alright, let's dive into the latest from Jim Cramer's Lightning Round, where he's got his eyes on Home Depot (HD). Now, I know what you're thinking – "Home Depot? Really?" But hear me out, because Cramer's got a point here.

First things first, Home Depot just crushed it in the most recent quarter. We're talking record-breaking margins, a fantastic spring selling season, and a massive raise in their forecast. So, what gives? Why did the stock get hammered?



Well, it seems like the analysts on the conference call were more interested in talking about the elephant in the room – Amazon – than celebrating Home Depot's incredible performance. They just couldn't stop asking about online competition and how long the good times could last. It was like they were trying to find any excuse to bash the stock.

But here's the thing: Home Depot isn't just sitting back and taking it. They're investing in their supply chain, enhancing technology, and improving the digital experience through their "One Home Depot" initiative. Plus, they're building a robust Pro ecosystem to cater to professional renovators and contractors. So, why are the analysts so fixated on Amazon?



Now, I'm not saying Amazon isn't a threat. They're a powerhouse, and they're always looking for new ways to disrupt the market. But Home Depot is no slouch either. They've got a massive network of stores, a strong brand, and a loyal customer base. And let's not forget, they're the go-to destination for DIY enthusiasts and professionals alike.

So, what's an investor to do? Well, Cramer's advice is to wait for the stock to get cheap enough that Home Depot can buy back shares and boost the dividend. But I say, why wait? Home Depot is still a solid investment, despite the analysts' fears.

Think about it – Home Depot's got a strong balance sheet, with over $15 billion in cash and a massive free cash flow. They're investing in their business, and they're not afraid to take on the competition. Plus, they've got a history of delivering for shareholders.



So, if you're looking for a solid investment in the home improvement retail space, Home Depot is still a buy. Don't let the analysts' fears and Amazon's shadow scare you off. Home Depot's got what it takes to weather the storm and come out stronger than ever.
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