CNBC Investing Club: Cramer’s Morning Take on Home Depot 8/18/26

SPEAKER_1 (0:00)

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Jim Cramer (1:01)

Jim Cramer here to share a short preview of my take on the market from today's members-only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10, 20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

We're being what I call cherry. We are not going to put money to work just because we're going to be oversold. We're looking for actual price pegs or a new company. I was kicking around Dell. I think Dell is going to have a great quarter, but the fact is, as Jeff pointed out, Dell has frankly had a big run, and so if it has a big run, you really have to wait. I talked about buying Home Depot because that Home Depot quarter was terrific.

I think Home Depot is going to be up tomorrow. People have been reluctant to recommend it because they don't know the health of Ted Decker. They have a very, very deep bench at Home Depot.

Jeff Marks (1:58)

Yeah. Revenue beat, adjusted EPS, 492 versus 473, a tariff benefit helped that number, but the comps, look, in absolute terms, 17, not maybe Home Depot six years ago during COVID. But it still beat the consensus of 0.9 in US comps up 13, seven straight quarter of positive comps, the best number in a few years, so that says something.

Jim Cramer (2:23)

That cadence was good. You just buy it here. Now, the reason why I'm so bullish about it is because if they can do this number in this environment, well, what do they do if we have a better environment? The Cole Brothers will probably tell a good story of the 29% is cash buy. Obviously, we need rates to settle down before people just go nuts, but someone is going to anticipate that and buy Home Depot.

Jeff Marks (2:46)

Yeah, the cadence was good. May up 0.5 in the US., June 1.2, July up 2.2, so when we mean cadence, that's the progression month over month.

Jim Cramer (2:54)

But I wish they hadn't directly related to tariff, but they're very conservative in comping.

Jeff Marks (2:58)

Yeah. Some other highlights, pro positive comps, outperform DIY, SRS, which is a big part of their pro business, SRS distribution, comps above the company average, positive in all verticals. They reiterated the full year outlook, so again, incorporating the challenges in the housing market, as well as maybe some energy and fuel costs in the back half of the year.

And yes, as the CFO, Richard McPhail, remember Ted Decker, not on the call, leave of, medical leave of absence, says frozen housing market, but they are taking share.

Jim Cramer (3:34)

Right, no, I know, I've gone out with him for dinner, and he's very conservative. I know Ted is like a rip-worn bull, but I mean, when I met with Ted, I was at their annual meeting, their meeting where... Yeah, in Vegas, right? Yeah, I mean, that's why I say that I know the bench is great, because I met the bench.

This is a company that will not be hurt.

I have no slight on Ted. He's terrific. But it will go up, and someone's going to recommend the stock. And I think that you should recognize that because I talked about it, we can't go and buy it. But all those things that Jeff said are terrific.

SPEAKER_5 (4:07)

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