TheStreet's Jim Cramer told Brittany Umar that despite beating on the top and bottom lines last quarter, Home Depot sold off on what was largely considered a good report. Cramer attributed this to the market's perception that tapering by the Federal Reserve was just around the corner.
However, as the supposed September tapering date has passed, with no indication a reduction in asset purchases will begin anytime soon, shares of Home Depot have begun to rally once again. So Cramer expects another solid quarterly report from Home Depot tomorrow.
So should investors buy HD? Not exactly, Cramer said.
Instead, investors ought to look at Lowe's (LOW). The company, a holding in Cramer's charitable portfolio, Action Alerts PLUS, "is going from bad to good," whereas "Home Depot is just going from great to great," he said.
-- Written by Bret Kenwell in Petoskey, Mich.