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NEW YORK ( TheStreet) -- Things are going to be looking up for the home improvement stocks, Jim Cramer told Lindsey Bell at TheStreet.com Monday.

That's why both Home Depot ( HD) and Lowe's ( LOW) are buys.

Cramer said both companies have been in turnaround mode for some time. But with housing beginning to recover, both stocks should begin to do well.
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Even more important, however, are the effects from Hurricane Sandy, Cramer said. In many areas of New Jersey, for example, homeowners are still not even allowed to survey the damage, let alone begin to repair it.

"We just don't know the extent of the damage," Cramer said, but the rebuilding efforts will surely be a tailwind for these stocks.

Of the two, Cramer said Home Depot remains his favorite because the company reported a stellar quarter but was drowned out by fiscal cliff concerns.

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-- Written by Scott Rutt in Washington.

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