Jim Cramer Reveals Why The Home Depot, Inc. (HD)'s Shares Soared

We recently published 10 Stocks Jim Cramer Discussed As He Dismissed A Recession. The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer recently discussed.

Home improvement retailer The Home Depot, Inc. (NYSE:HD)’s shares have gained 7.5% year-to-date as they have struggled in a housing market constrained by high interest rates. However, the shares did gain 1.8% last week on hopes of a rate cut. Cramer explained the movement in The Home Depot, Inc. (NYSE:HD)’s shares in detail:

“Having traded bonds for a living for a while, what you have to understand is this that, these are very small increments, and you don’t, when you’re focused on the ten year, don’t suddenly focus on the thirty year. That confuses people at home. Rates are going lower. Okay. Now this time, one year ago, one year ago, they cut, and then the long end went up. This time, I think they cut, and the long end goes down [and that would include mortgage rates]. And that’s why the housing stocks have had, just a [inaudible] yesterday, that indicated that you’re going to see gigantic explosion of housing starts. . . yesterday Home Depot was the star of the show. And that made sense to me. Because they told you this time it’s for real. And I think that this time Home Depot which has been nothing for a long time. . .go higher. Yeah see there it is [points to the graph], that’s what you buy. That’s what you buy right here right now because we got the tariffs already in. . .”

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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