If you want to play on the housing sector turning around, Jim Cramer says it's time to go home -- to
, that is.
Cramer said during his "Mad Money" Lightning Round on Tuesday that the home furnishing retailer is the better choice over the more upscale chain
While Williams-Sonoma reported a
in first-quarter earnings today, it maintained a rather cautious full-year outlook, sending shares tumbling more than 10% in early trading to $13.29.
Shares of Williams-Sonoma -- which sells higher-end specialty home products in its Williams-Sonoma, Pottery Barn and West Elm chains -- have been trading between $4.35 and $25.29 in the 52-week period.
Cramer, however, doesn't think Williams-Sonoma is well managed, and says Home Depot has more upside.
Last month Home Depot announced that its earnings had soared 44% in the first quarter and reaffirmed its full-year outlook. Cramer said the company has a good yield, and is a great play if you bet on California recovering near-term.
Shares of Home Depot have been trading between $17.05 and $30.74 in the 52-week period, and closed on Tuesday up 1.4% to $24.50.
It's hardly a state secret that shoppers are trading down and cutting back on discretionary purchases. While small household fixer-uppers like paint and gardening supplies are doing well at Home Depot and
, big ticket furniture, not so much.
Both Home Depot and Lowe's in their earnings reports said big-ticket sales are still falling dramatically because of the recession, while the volume of shoppers who spent about $50 during a visit held steady.
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