Mad Money Spotlight: Cramer on Home Depot

Home Depot beats out Williams-Sonoma when it comes to home furnishing.
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If you want to play on the housing sector turning around, Jim Cramer says it's time to go home -- to

Home Depot

(HD) - Get Report

, 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


(WSM) - Get Report


While Williams-Sonoma reported a

smaller-than-expected loss

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


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, 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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