News Analyst
Shortly after the opening bell, we will be buying 30 shares of Home Depot at roughly $414.53. Following the trade, Jim Cramer’s Charitable Trust will own 175 shares of Home Depot, increasing its weighting to about 2% from 1.66%. Home Depot reported a strong set of third quarter results Tuesday. Companywide comparable sales declined 1.3%, much better than the 3.1% decline expected, according to FactSet. In the United States, comparable sales fell 1.2%, the smallest decline in nearly 2 years. Sales related to Hurricanes Helene and Milton were a tailwind of about one half a percentage point to sales growth. The company also raised its full-year outlook across several key metrics. Home Depot shares are up a little more than 1.5% in premarket trading, but we believe the stock should be up more off this beat and raise. The fact that comparable sales were down by its smallest amount in nearly two years is a good sign that the business is bottoming and will inflect positively next year. Additional rate cuts from the Federal Reserve should unlock the significant pent-up demand for projects, which we expect management will talk about on the upcoming earnings call. (Jim Cramer’s Charitable Trust is long HD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
