It’s home depot time. Gardening enthusiast himself, Jim Kramer calls the next two weeks “Christmas” and calls home improvement retailers. Home Depot has launched an outdoor sales event for Memorial Day until May 28th. It features huge discounts on plants and landscaping materials, as well as big spring and summer items such as grills and patio furniture, where big spring and summer items are used to induce consumers into the store. Warm weather and seasonal trends like gardening are huge sales generators for the club name. In 2024 Home Depot’s indoor and outdoor garden sales increased by 1.29% from the previous year. The total category accounts for approximately 13% of Home Depot’s total sales of approximately $1595.1 billion. Wood and paint for the context were 7.7% and 7%, respectively. Home Depot’s second quarter – May, June and July period – is usually the highest revenue quarter. Factset’s consensus estimates suggest that the same is expected to apply this year. The company is expected to see its second quarter revenues increase by 5.3% year-on-year to $45.4 billion. Of course, there is a lot of potential to happen to date given the uncertainty of tariffs and the mortgage rates that are still dependent on them. So investors will be eager to focus on the progress guidance provided along with the company’s first quarter revenues scheduled for release prior to Tuesday’s opening bell. Analysts at Bernstein cited “adverse weather, weak consumer sentiment, and mixed performance from peers and suppliers.” According to LSEG, the consensus is seeking revenue of $39.3 billion, up 8% last year. Earnings per share are expected to be $3.59, a yearly decline per LSEG. The weather will be better this spring and summer, and outdoor sales will be stronger. However, the trajectory of Home Depot Stocks is more closely linked to housing sales. While the average 30-year fixed-rate mortgages is below 7%, demand for mortgages from buyers has increased for the second consecutive week. Another faint hope, Morgan Stanley released a survey earlier this month with 131 contractors. Merchants expected more growth later in the year. Jim says mortgage interest rates need to fall below 6.5% to stimulate the housing market. HD YTD MOUNTANE HOME DEPOT The impact of YTD tariffs is also a clear concern for Home Depot, but headwinds could slowly fade amid escalation between the US and China. Stanley Black & Decker’s upgrade to a Bivariate rating at Barclays this week could also be a good indication. “Ultimately, we believe that tariff-related risks create short-term drawbacks will ultimately lead to a more robust recovery,” said UBS analysts in a memo on Monday. Home Depot CEO Ted Decker has confirmed that retailers will win no matter what happens in tariff situations. “I like Home Depot despite it’s against what you’re seeing,” Jim said. Home Depot’s shares fell approximately 2.5% per year. This is comparable to the roughly 1% gain of the S&P 500, which was positive on Tuesday in 2025 and built up those profits in the next three sessions, including Friday. Home Depot stock is about 12% below its record closure, just over $431 on December 6th (Jim Cramer’s charity trusts can be found here for a full list of stocks.) As a CNBC Investing Club subscriber with Jim Cramer, he receives a trade warning before Jim makes a deal. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before running the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with the disclaimer. Due to receiving information provided in connection with the Investment Club, there is no obligation or obligation of the fiduciary. No specific outcomes or benefits are guaranteed.
Home Depostore located in Hyattville, Maryland, February 22, 2022.
Stefani Reynolds | AFP | Getty Images
