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The housing market is in a turnover phase, where home sales increase as bargain hunters swoop in to nab deals,


(LOW) - Get Lowe's Companies, Inc. Report

CEO said during its conference call on Monday.

What should investors buy during this phase? Just take a look at Lowe's earnings results for the answer.

While the home furnishing retailer posted a 22% decline in first-quarter earnings, they were well ahead of analysts' forecast, as consumers look to spruce up their homes for the inevitable turnover.

As a result, the company saw strength in paint, hardware and plumbing items, as well as vegetable plants and seeds.

Jim Cramer said during his "Mad Money" segment yesterday to pick up shares of paint producer

Sherwin Williams

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(SHW) - Get Sherwin-Williams Company Report


Scotts Miracle-Gro

, which makes lawn and garden care products.

Shares of Sherwin Williams jumped 3% to $57.46 in morning trading, after the company was upgraded by J.P. Morgan to overweight from neutral. Analysts attributed the upgrade to a strong balance sheet and long-term investment fundamentals. And Cramer said the company has even more upside potential.

Last week

Cramer hosted Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro, on "Mad Money." The company saw a 33% jump in second-quarter profit and said it will pay a dividend of 13 cents to investors. Shipments to retailers are also up 45% in May.

The housing market has four phases, Cramer said: First, home prices soar and eventually top out; followed by a period of stagnation where prices fall; then the turnover phase, where sales increase on bargains; and, finally, comes the recovery phase, where prices start to rise.

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