This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer Likes Home Depot and Lowe's

NEW YORK ( TheStreet) -- Jim, Lowe's reported solid earnings this morning. They even raised sales guidance. Now I know there was a little benefit from Sandy in there, but was their restructured pricing strategy to be credited?

Jim Cramer:

You know they've been operating in turn-around mode for a long time. The housing boom is so great that everybody wins. It's a rising tide. Existing home sales are terrific. Also I think that Sandy is underestimated. Let me just tell you why. If you are to go in...let's say in a normal situation you have a catastrophic storm. What happens is on day one you get the storm, day two you pick up the pieces, and day three you call the contractor, and say okay listen, I want to get this done.

You're not allowed into a lot of the homes. Individual homeowners are not allowed into a lot of the homes in New Jersey because the infrastructure is so destroyed, the roads are destroyed, and the houses are destroyed. The National Guard won't let you there. They won't even let in contractors. They're letting in the contractor plus one employee, that's it.

So we don't really know the size of the damage, but the people I know who are down there are saying that it is just unfathomable how much business will be generated by this, in the wallboard business, in the tool business. I'd say that Sandy is going to be, beginning in December, a huge wind at the back of Lowe's, as well as Home Depot.

Lindsey Bell:

So does this benefit GDP then too?

Jim Cramer:

I think so. I think so. Now, I mean, the federal government's going to have to do what we don't, as a taxpayer don't want them to do, which is support the infrastructure in all these places that, under the Stafford Act, where you could just basically say okay look, maybe you shouldn't rebuild these areas.

I interviewed Governor Christie Whitman recently, a former governor, and she said look, we were always debating whether to allow the construction where it is. But I think that one of the things that is the American way is you can't stop building.

So I just think that Lowe's has got a lot of things going for it. I think Home Depot does too. I think that these are excellent stocks.

Lindsey Bell:

Do you prefer one over the other here, I mean, Lowe's is a little bit cheaper?

Jim Cramer:

I like Home Depot more, just because I think that the stock reported a great quarter, but it happened to have taken place during the fiscal cliff negotiations.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
HD $110.06 0.00%
LOW $71.25 0.00%
AAPL $128.70 0.00%
FB $78.81 0.00%
GOOG $540.78 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs