Jim Cramer remains bullish as ever on Lowe’s Companies Inc (NYSE: LOW) even though it has already gained about 10% over the past couple of weeks.
Cramer shares his view on Lowe’s stock and $HDThe Mad Money host expects the home improvement retailer to report upbeat quarterly results in early March.
Cramer has a similar view on its Atlanta-headquartered peer Home Depot Inc (NYSE: HD) as well. “The next move will be in this group”, he said this morning on CNBC’s “Squawk on the Street”.
The famed investor is convinced the upcoming retail sales data will be “very positive for spending on renovation and repair.”
Lowe’s is expected to earn $1.68 a share this quarter versus $2.28 per share a year ago. Its shares are currently up more than 25% since its low in late October.
Watch here: https://www.youtube.com/embed/awr3p5AsBsA?feature=oembedJPMorgan analyst sees another 15% upside in $LOWAlso on Monday, Christopher Hovers – a JPMorgan analyst upgraded Lowe’s stock that pays a dividend yield of 1.91% to “overweight” as it stands to materially benefit from expected rate cuts in 2024.
History says that the Fed will begin cutting interest rates in March 2024.
Historically speaking, the Fed waits 8 months on average from its last rate hike to start cutting rates.
With the last rate hike being in July 2023, rate cuts would be expected to begin in March 2024… pic.twitter.com/tx9DehNNGQ
He raised his price objective as well to $265 today which suggests another 15% upside from here. In a note to clients, JPM’s Hovers argued:
While we think the rebound will be partly muted by locked-in mortgage dynamic, the potential magnitude of such recovery suggests strong acceleration in trends against low consensus expectations.
The analyst is convinced that “appliances” – the largest sales category of Lowe’s Companies Inc is further ahead in the deflation process.
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