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NEW YORK (
) -- With a turnaround in housing underway, it's time to go shopping for home-related stocks, Jim Cramer told
viewers Tuesday. That means taking a stroll through the aisles of
(HD - Get Report)
Cramer said Home Depot's conference call was a thing of beauty, one where management told investors that even the hardest-hit areas of the country, California and Florida, are seeing improvements in their housing markets. Cramer said that news alone is enough to warrant a buy of Home Depot, along with any of the home builders with big exposure to those regions.
He gave the nod to
But beyond the obvious, Cramer said that Home Depot is also excellent for tipping investors off to which categories are poised to profit most. The company noted that inventories are lean, meaning new orders are coming for a whole host of companies including flooring, paint, kitchen and bath, lumber, tools and more.
Cramer said when it comes to flooring, he likes
, and when it comes to paint
is the way to play. For kitchen and bathrooms, Cramer likes
Fortune Brands Home Security
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS
, and also
, a stock making new 52-week highs.
Cramer said that even
is too cheap to avoid at these levels. He'd also be a buyer of
Stanley Black & Decker
in the tools space.
Finally, Cramer said that he's a buyer of
, another Action Alerts PLUS name, as that company's PayPal unit is now accepted at Home Depot and could be a catalyst for other big merchants.
Off The Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of
Currency Shares Euro Trust
, the ETF that gauges the health of the euro against the U.S. dollar. According to Collins, the euro may be poised for a rebound. Cramer said that's a theory investors should pay attention to since Collins correctly called the top in the euro several months ago.
Looking at the daily chart of the FXE, Collins noted the euro's fall since March of this year. However, both the TRIX and relative strength indicator (RSI), two gauges of momentum, are signaling an oversold condition. This, combined with a recent head-and-shoulders pattern, is telling Collins that a bounce may be imminent.