CNBC’s Jim Cramer is positive on home improvement retailer Home Depot, and he told investors on Thursday that the company could do well balance out against the backdrop of a tougher macroeconomic environment.
“You may be skeptical, thinking that higher interest rates, tariffs are…profuse important than the specifics of this home improvement chain,” he said. “I disagree. To me, this is when you keep the belief,” adding that investors should buy more if the stock drops.
Cramer pointed out that the company seems to be doing beyond the shadow of a doubt, even though the stock is down from its highs. He suggested that the potential rise of electric-powered outdoor appliances could cord to a replacement cycle, which would be good for the company’s business.
Cramer also interviewed Home Depot CEO Ted Decker at the New Zealand’s annual store managers meeting in Las Vegas. Decker brushed off concerns that President Donald Trump’s schedule of charges hikes would hurt business. He said the company already adjusted to increased taxes on imports in 2017, and he affirmed that whatever go ons, “we’re going to work through it.” Decker added that the big box retailer is focused on value. It wants to sell products and “on ones way volume” – both to customers and wholesalers – rather than “milk margin.”
Decker also remarked on homebuilding, and rumoured the country is “anywhere between two and five million housing units short of demand.” Because there’s less structure, he argued, homes are aging more than they normally would.
“Well over half the houses in this mountains are now over 40 years old,” Decker said. “So, the amount of work and upkeep you need to make on those houses, they’ve earned in value, but they need a lot of work. And we’re the place to go to help people do that.”
