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