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Morning Bell With Jim Cramer: Home Depot? Or Maybe Lowe's

Jim Cramer talks stock market news including Home Depot and Roblox earnings.

Stock futures declined Wednesday, a day after the S&P 500 fell the most in four weeks, as Wall Street awaited the Federal Reserve's update on how close the central bank might be to pulling back stimulus.

In the most recent "Mad Money" on CNBC, TheStreet Founder Jim Cramer told viewers not to get too complacent in their negativity. He remains bullish even in the fact of Tuesday's negative news.

Cramer and TheStreet Senior Portfolio Analyst Jeff Marks are talking about Home Depot and Roblox earnings.

Home Depot vs. Lowe's

Home Depot  (HD) - Get Home Depot, Inc. (HD) Report posted stronger-than-expected second-quarter earnings but same-store-sales growth for its U.S. outlets slowed to 3.4% from last quarter's 29.9% tally.

Cramer said Home Depot "did have issues" and "their paint has gotten too high a price."

"Everyone is hoarding [paint]. Home Depot went from $150 to $338. The idea that it shouldn't come down here is fanciful. ... It's been up big."

"Overall what you maybe want to look at is Lowe's  (LOW) - Get Lowe's Companies, Inc. (LOW) Report could do better than Home Depot. Lowe's is down a tremendous amount already," he added.

On Wednesday, home-improvement retailer Lowe's posted stronger-than-expected second-quarter earnings and raised its full-year revenue outlook to $92 billion from $86 billion.

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Roblox: Buy Or Sell?

Videogame platform Roblox  (RBLX) - Get Roblox Report on Tuesday reported second-quarter bookings that missed analysts' forecasts.

Bookings, a non-GAAP measure of sales used by videogame companies, rose to $665.5 million in the second quarter from $494.2 million a year earlier but came in below estimates of $683.3 million.

Roblox posted strong growth in users and engagement.

Cramer advised investors to buy Roblox as a school and pandemic play. 

"You're throwing it away at the wrong time. Do I think it could go back to $85-$90? Definitely. ... The stock got hit after they had a bad month at the end of the last quarter. They had a great month in July and no one is talking about that; everyone is focused on the past," said Cramer.

These stocks aren't holdings in Jim Cramer's Action Alerts PLUS investing club. But to be alerted before Jim Cramer adds or removes stocks from the club's portfolio, learn more now.