CNBC’s Jim Cramer on Monday suggested that Home Depot is able to both grow independently of the business cycle and flourish when the economy is doing…
CNBC's Jim Cramer on Monday suggested that Home Depot is able to both grow independently of the business cycle and flourish when the economy is doing well.
"Their hybrid model works," he said."The company's secular characteristics carry it through the cyclical pain, so even if the Fed doesn't move with alacrity to cut rates, Home Depot will still win.""Their hybrid model works," he said."The company's secular characteristics carry it through the cyclical pain, so even if the Fed doesn't move with alacrity to cut rates, Home Depot will still win.
Lower interest rates tend to improve the housing market, which normally bodes well for housing-related stocks like Home Depot.that are helping Home Depot succeed in the current economic environment, including a lack of new houses for sale coupled with existing ones that are aging and in need of improvements. A significant crop of Millennial homeowners will shop at Home Depot, he continued, and added that there is a large amount of home equity money in the U.S. for renovations.
"Now you could argue that this is an unusual moment, but historically, it's actually not that unusual for Home Depot," he said."There's a boom and bust portion of the business, but for most of that period since 1981, it kept growing regardless."Cramer says to not trade big winners ahead of earningsCrime and Courts
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