Jim Cramer on Home Depot (HD): 'I Think We're in Good Shape'
We recently published a list of . In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer discusses.
A caller asked how Cramer thinks The Home Depot, Inc. (NYSE:HD) would perform in the long term. He replied:
'Oh man, I was making calls on Home Depot today because it's starting to roll, and then wouldn't you know it, it pulled back right at the end. I think we're in good shape. I think when rates just stay stable, we'll be fine. I think that the gardening season's coming along fine, but let me just say, people just look at housing starts and they say, let's sell Home Depot. Don't be constrained by that. I think they're going to have a great year. Let's think seven years, not seven days. Thank you, Larry Fink for that. I love that. It was in the FT yesterday.'
Home Depot (NYSE:HD) is a retailer specializing in home improvement products, including building materials, home décor, and garden supplies. The company provides installation services for home projects and rents out tools and equipment. Earlier in May, Cramer said:
'Now, not that long ago, we dropped in on a monster Home Depot store management meeting in Vegas where we heard about some great ideas for spring gardening season, which by the way, kicks into overdrive this weekend. Unfortunately, these big weeks for lawn and garden have been overshadowed by stubbornly high interest rates and no rate cuts from the Fed, not to mention tariff worries. Now I've watched this stock since it came public, and there are plenty of times that Home Depot doesn't actually march to the tune of interest rates, but instead is levered to repair and renovation.
An insurance broker discussing policy options with a homeowner.
As so many people are stuck in their homes, I'm willing to trade up because that would force them to give up that low mortgage rate that they may have gotten during the COVID period. Now we own the despot for the Charitable Trust, and while I'm not expecting a blowout by any means, I have to tell you I like it long term, and it's down 2% for the year, well, off its highs… Home Depot stock is a great one to own because, like Walmart, these guys have the scale to cope with the tariffs that are going to be put on so many foreign-made goods that they sell at Home Depot. The little guys we know, they don't have that kind of flexibility.'
Overall, HD ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
America's Car-Mart (NASDAQ:CRMT) Delivers Strong Q1 Numbers, Stock Soars
Used-car retailer America's Car-Mart (NASDAQ:CRMT) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 1.9% year on year to $370.2 million. Its GAAP profit of $1.26 per share was 46.1% above analysts' consensus estimates. Is now the time to buy America's Car-Mart? Find out in our full research report. Revenue: $370.2 million vs analyst estimates of $343.5 million (1.9% year-on-year growth, 7.8% beat) EPS (GAAP): $1.26 vs analyst estimates of $0.86 (46.1% beat) Adjusted EBITDA: $33.92 million vs analyst estimates of $25.12 million (9.2% margin, 35.1% beat) Operating Margin: 8.6%, up from 5.1% in the same quarter last year Free Cash Flow was $18.44 million, up from -$12.01 million in the same quarter last year Locations: 154 at quarter end, in line with the same quarter last year Same-Store Sales fell 3.9% year on year (-5.3% in the same quarter last year) Market Capitalization: $477 million With a strong presence in the Southern and Central US, America's Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers. Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. With $1.39 billion in revenue over the past 12 months, America's Car-Mart is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, America's Car-Mart grew its sales at a solid 13% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) despite not opening many new stores. This quarter, America's Car-Mart reported modest year-on-year revenue growth of 1.9% but beat Wall Street's estimates by 7.8%. Looking ahead, sell-side analysts expect revenue to grow 4.7% over the next 12 months, a deceleration versus the last six years. Still, this projection is healthy and implies the market sees success for its products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. America's Car-Mart listed 154 locations in the latest quarter and has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. America's Car-Mart's demand has been shrinking over the last two years as its same-store sales have averaged 2.7% annual declines. This performance isn't ideal, and we'd be concerned if America's Car-Mart starts opening new stores to artificially boost revenue growth. In the latest quarter, America's Car-Mart's same-store sales fell by 3.9% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track. We were impressed by how significantly America's Car-Mart blew past analysts' revenue, EPS, and adjusted operating income expectations this quarter. Zooming out, we think this quarter featured some important positives. The stock traded up 6.9% to $61.75 immediately following the results. America's Car-Mart may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
Opinion: It's Time to Buy UnitedHealth Group Stock After a 50% Plunge
Most of UnitedHealth Group's issues should be temporary. The two biggest threats to the healthcare giant are iffy. The price is right to buy UnitedHealth Group stock after its steep decline. 10 stocks we like better than UnitedHealth Group › UnitedHealth Group (NYSE: UNH) might want to change its stock ticker from "UNH" to "UGH." The latter better captures the feelings of the healthcare giant's shareholders in recent months. A string of problems has caused UnitedHealth Group's share price to plunge roughly 50% from the peak set in the fourth quarter of 2024. Some analysts have downgraded the stock, with HSBC recommending that investors reduce their holdings and slashing its price target. I have a different opinion, though. I think it's time to buy UnitedHealth Group stock. Here are three reasons why. I don't think investors should ignore UnitedHealth Group's issues. However, the challenges should be viewed with a long-term perspective. I suspect most of the problems the company faces should be temporary. UnitedHealth Group has already largely moved past the cyberattack that occurred in February 2024. Although it cost the healthcare company over $2 billion, that issue has already proven to be a short-lived one. Higher Medicare Advantage costs are the main culprit behind UnitedHealth Group's suspension of its 2025 full-year guidance. But the company says that it expects to return to growth in 2026. I believe this prediction because it makes sense. Insurers sometimes incur higher-than-anticipated costs and feel the pain for a while. However, once they adjust premiums, the problem goes away. UnitedHealth Group announced the sudden departure of former CEO Andrew Witty at the same time it withdrew its 2025 outlook. Any worries investors might have had surrounding this move probably dissipated quickly after they learned Stephen Hemsley was returning to run the company. Hemsley served as CEO from 2006 through 2017, a period when UnitedHealth Group stock more than tripled. I also view the two biggest threats to UnitedHealth Group as iffy. What are those threats? An alleged U.S. Department of Justice criminal investigation of the company and President Trump's stated goal to eliminate pharmacy benefits managers (PBMs). Noted that I used the word "alleged" to describe the U.S. Department of Justice probe. The Wall Street Journal reported on May 14, 2025, that "people familiar with the matter" revealed that the DOJ had launched a criminal investigation of UnitedHealth Group for possible Medicare fraud. However, the company quickly responded that it hadn't been notified of any DOJ investigation. That status hasn't changed. President Trump did announce that he wants to "cut out the middleman," a clear reference to PBMs. That's easier said than done, though, to put it mildly. Removing PBMs from the U.S. healthcare system would require a detailed, comprehensive plan that so far has not been provided. That plan would also have to pass in both the Senate and the House of Representatives. You can bet that the PBM industry, including UnitedHealth Group, would lobby fiercely against any such legislation. I think this threat, while serious, has a relatively low probability of actually materializing. Finally, I think all these issues are fully baked into UnitedHealth Group's share price. The stock currently trades at a forward price-to-earnings ratio of around 13.3. That's well below the S&P 500 healthcare sector forward earnings multiple of 16.6. It's also the lowest valuation for UnitedHealth Group in more than a decade. Could the stock fall further? Maybe, but I believe that UnitedHealth Group's share price has bottomed out. You might have noticed that UnitedHealth Group's share price has traded in a relatively narrow range since the steep decline in April and May. This trading pattern seems to confirm my view. Any good news for UnitedHealth Group could provide a nice catalyst. I predict that the company will have some positive developments in the not-too-distant future, potentially including new full-year guidance that calms investors. If I'm right, buying UnitedHealth Group stock now could pay off handsomely. Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends HSBC Holdings and UnitedHealth Group. The Motley Fool has a disclosure policy. Opinion: It's Time to Buy UnitedHealth Group Stock After a 50% Plunge was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
2 Unstoppable Stocks to Consider Buying, Even Amid Market Volatility
Netflix has a solid plan to become a trillion-dollar company by 2030. Veeva Systems still has a massive addressable market. 10 stocks we like better than Netflix › Broader equities have not performed particularly well in 2025. The S&P 500 is barely in the black year to date. However, considering it hovered near bear market territory a few weeks ago, things aren't so bad. Stocks might not be out of the woods, though. Economic issues could arise, sending markets down, as the Trump administration continues to implement its trade agenda. That said, regardless of what happens on that front, there are plenty of companies worth investing in. Here are two great examples: Netflix (NASDAQ: NFLX) and Veeva Systems (NYSE: VEEV). Netflix, a streaming specialist, has been grabbing headlines recently for all the right reasons. The stock is up for the year, financial results have been good, and management sees significant upside ahead. The company has plans to join the exclusive club of trillion-dollar stocks by 2030. From its current market cap of $522 billion, that will require a compound annual growth rate of 13.9%. That's nothing to sneeze at, but it's well within the company's reach, in my view. Five years ago, Netflix ended 2019 with $20.2 billion in revenue. Last year, that had risen to $39 billion -- a compound annual growth rate (CAGR) of 14.1%. True, a lot has changed since. There is more competition in the streaming field, for instance. Even so, Netflix has made changes that have kept it in the lead in the industry, including a crackdown on password sharing and the introduction of a low-priced ad-supported tier. The company doesn't grow its revenue quite as fast as it used to, but in the past five years, profits and free cash flow have soared. Meanwhile, there is still considerable room for growth in the streaming industry. Netflix's estimate of a $650 billion revenue opportunity reflects the fact that streaming still has yet to completely overtake entertainment. The industry's penetration should expand over the long run and benefit Netflix, considering its strong position, network effect, and brand name. Furthermore, it is increasingly using artificial intelligence (AI) to enhance its content strategy, which is already a key to its success. Though AI won't be the center of Netflix's universe, it can allow the company to make better movies for less money, something that will make a difference down the road. So the goal to achieve a trillion-dollar valuation in the next five years isn't just a pipe dream -- it is well within the company's powers. Even if it fails, though, the stock should deliver superior returns well beyond 2025. Veeva Systems isn't the biggest player in the cloud industry. That title arguably goes to Amazon, with other tech giants, such as Alphabet and Microsoft, not far behind. However, Veeva Systems is a leader in a niche within the industry. It offers cloud solutions primarily to life science companies such as drugmakers. The fact that the company's list of clients features some of the largest pharmaceutical players, including Merck, Novo Nordisk, and Eli Lilly, is telling. The company is doing something right. Here's what that thing is: It has developed a wealth of cloud services specifically catered to the stringent regulatory (and other) demands of the industry. Generic solutions won't do for many of these companies. Enter Veeva Systems. The cloud computing specialist's financial results also reflect its success. Revenue and earnings have been growing at a good clip. And when management set revenue goals to be achieved by a certain date in the past, Veeva has met the goal. It recently hit its $3 billion revenue run-rate target -- which, in 2019, it said it would achieve by the calendar year 2025. That's a management team investors can trust. Many CEOs overpromise and underdeliver. Meanwhile, Veeva still has plenty of white space ahead, with an estimated $20 billion addressable market. Revenue over the trailing-12-month period is $2.9 billion. Given the high switching costs, the company should remain a strong player in this niche for some time as it continues to make headway in its market. It could encounter some headwinds if the economy tanks, as it did a couple of years ago. But the company has recovered nicely since -- a microcosm of what its performance might look like over the long run. Even with occasional slowdowns, expect Veeva Systems to deliver above-average returns in the next decade. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon, Eli Lilly, and Novo Nordisk. The Motley Fool has positions in and recommends Alphabet, Amazon, Merck, Microsoft, Netflix, and Veeva Systems. The Motley Fool recommends Novo Nordisk and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Unstoppable Stocks to Consider Buying, Even Amid Market Volatility was originally published by The Motley Fool
