Jim Cramer Says He Wants to Buy Home Depot Stock When It's Not Hot

The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer shared his thoughts on. Cramer mentioned the stock and recommends buying it when it is not doing so well. He commented:

“Home Depot, now here’s a company that’s seen as being synonymous with the housing market, and the housing market stinks. Well, not enough homes being sold, gotta be bad, right? Well, wait a second. This stock’s now been in the doghouse for ages. It’s also why we’ve been buying for the Charitable Trust. Like Costco, people don’t seem to want to buy Home Depot unless it’s within spitting distance of its highs. They want to buy Home Depot when it’s hot. I want to buy Home Depot when it’s not.

First, let’s deal with this big misperception about Home Depot. It’s not just about home sales. It’s geared to remodeling and renovation. That’s why the despot just spent $18.5 billion to buy a company called SRS Distribution last year that helps contractors with building materials, mainly roofing and pool supplies, and landscaping.

They just spent $5.5 billion on GMS, a drywall, steel framing, and ceiling products distributor. In other words, in the last year, Home Depot’s only improved its position in remodel and renovation while it waits for the housing market to come back. Now, why does this matter? Because you don’t get many chances to buy the stock of Home Depot at a considerable discount to its high. People would rather buy Home Depot at $439, its high from last year, than $373, where it’s trading now. I look at it like this: How often can you buy a quality franchise like Home Depot when it’s not running, when it’s not near its high? Not often.”

Home Depot (NYSE:HD) sells building materials, home improvement products, and décor items, provides installation and equipment rental services, and serves both individual consumers and professional contractors.

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Disclosure: None. This article is originally published at Insider Monkey.