Stock Market Gains at Risk Without Rate Cuts, Says Jim Cramer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 40 minutes ago
0mins
Should l Buy HD?
Source: CNBC
- Inflation Pressure Intensifies: The consumer price index rose 0.6% in April, pushing the annual inflation rate to 3.8%, which diminishes the likelihood of Federal Reserve rate cuts and impacts the sustainability of stock market gains.
- Bond Market Impact: The hotter-than-expected inflation data caused the 2-year Treasury yield to briefly reach 4%, indicating that investors are dialing back expectations for future rate cuts, potentially putting more pressure on the stock market.
- Sector Rotation Weakness: While the rotation into previously beaten-down sectors like healthcare is encouraging, Cramer warns that without support from the bond market, sustained stock market gains will be challenging, urging investors to remain cautious.
- War's Economic Impact: Cramer highlights that rising oil prices due to the Iran war are increasing costs across various categories, further narrowing investors' opportunities, particularly affecting stocks like Home Depot that rely on lower borrowing costs.
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Analyst Views on HD
Wall Street analysts forecast HD stock price to rise
23 Analyst Rating
17 Buy
5 Hold
1 Sell
Moderate Buy
Current: 311.400
Low
320.00
Averages
401.47
High
441.00
Current: 311.400
Low
320.00
Averages
401.47
High
441.00
About HD
The Home Depot, Inc. is a home improvement retailer. It offers its customers an assortment of home improvement products, building materials, lawn and garden products, decor products, and facilities maintenance, repair, and operations (MRO) products, in stores and online. It also provides a number of services, including home improvement installation services, and tool and equipment rental. It operates over 2,359 stores located throughout the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico. Its stores average over 104,000 square feet of enclosed space, with over 24,000 additional square feet of outside garden area. It also maintains a network of distribution and fulfillment centers, as well as mobile applications and e-commerce websites in the U.S., Canada, and Mexico. It serves two primary customer groups, including both do-it-yourself (DIY) and do-it-for-me (DIFM) customers and professional customers (Pros).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Home Depot Canada Foundation Launches Orange Door Project Spring Campaign
- Fundraising Goal: The Home Depot Canada Foundation aims to raise $1.3 million during the 2026 spring Orange Door Project campaign to support youth-serving organizations nationwide, continuing its efforts to combat youth homelessness.
- Historical Achievement: In 2025, the foundation raised $2.9 million, demonstrating its ongoing impact and customer support in addressing youth homelessness.
- Donation Matching: On May 23, Home Depot will match all donations made in-store and online for the first time, amplifying the impact of every contribution and encouraging more customer participation.
- TradeWorx™ Initiative: By selling TradeWorx™ baseball caps, the foundation not only provides skills training and certifications to youth but also helps over 200 young people secure stable job opportunities, promoting their independence and housing stability.
See More
The Home Depot Acquires Mingledorff's to Enhance HVAC Business
- Acquisition Completed: On May 11, 2026, SRS Distribution, a subsidiary of The Home Depot, completed the acquisition of Mingledorff's, adding a new HVAC distribution vertical that expands its market share significantly.
- Significant Market Potential: The HVAC distribution market has a total addressable market of approximately $100 billion, and this acquisition increases The Home Depot's total addressable market to $1.2 trillion, enhancing the company's competitive position.
- Enhanced Professional Services: CEO Ted Decker stated that the acquisition strengthens SRS's high-growth distribution engine, providing a more comprehensive range of products and services to meet professional contractors' needs, thereby driving cross-selling synergies.
- Optimized Customer Experience: SRS CEO Dan Tinker emphasized that by integrating Mingledorff's HVAC expertise, SRS will offer greater convenience to professional customers, enhancing customer loyalty and promoting business growth.
See More
Stock Market Gains at Risk Without Rate Cuts, Says Jim Cramer
- Inflation Pressure Intensifies: The consumer price index rose 0.6% in April, pushing the annual inflation rate to 3.8%, which diminishes the likelihood of Federal Reserve rate cuts and impacts the sustainability of stock market gains.
- Bond Market Impact: The hotter-than-expected inflation data caused the 2-year Treasury yield to briefly reach 4%, indicating that investors are dialing back expectations for future rate cuts, potentially putting more pressure on the stock market.
- Sector Rotation Weakness: While the rotation into previously beaten-down sectors like healthcare is encouraging, Cramer warns that without support from the bond market, sustained stock market gains will be challenging, urging investors to remain cautious.
- War's Economic Impact: Cramer highlights that rising oil prices due to the Iran war are increasing costs across various categories, further narrowing investors' opportunities, particularly affecting stocks like Home Depot that rely on lower borrowing costs.
See More
US Stocks Retreat as Cramer Analyzes Market Dynamics
- Market Pullback: On Tuesday, the S&P 500 retreated due to a hotter-than-expected April consumer price index and spikes in oil and bond yields, indicating market sensitivity to rising rates, with Jim Cramer noting this adjustment is necessary for AI-related stocks.
- Home Depot Outlook: Despite struggling in a high-interest-rate environment, Jim Cramer remains bullish on Home Depot, believing it will outperform Lowe's, with Citi rating Home Depot as a buy, reflecting confidence in its future earnings potential.
- Nvidia Price Fluctuation: Nvidia shares slipped from a fresh intraday high ahead of its earnings report, although Wells Fargo raised its price target to $325, Jim Cramer advises investors to hold onto the stock, emphasizing its critical role in the market.
- Rapid Recap: At the end of the video, Jim Cramer mentioned stocks including FedEx, On Holding, Under Armour, Lowe's, and eBay, highlighting his focus on a diversified investment portfolio.
See More
Citi Analyst Upgrades Lowe's to Buy Amid Recovery Prospects
- Sales Growth Trend: Citi Research analyst Steven Zaccone highlights that Lowe's has achieved four consecutive quarters of same-store sales growth, indicating a stronger market exposure in the DIY-led recovery, which has prompted an upgrade of its stock rating from Hold to Buy, reflecting market confidence in its future performance.
- Macro Risk Assessment: Despite external risks from geopolitical conflicts, interest rates, and the housing market, Zaccone believes that Lowe's shares present an attractive risk/reward profile after the recent pullback, especially against the backdrop of strong spring performance, with expectations for the company to exceed first-quarter forecasts.
- Market Demand Potential: Zaccone anticipates that 2026 will be a year of gradual improvement, even if growth is slightly lower, as pent-up demand for home improvement spending is expected to rise due to increased existing home sales and lower rates, providing support for Lowe's long-term growth.
- Competitor Analysis: While Zaccone has slightly trimmed his full-year estimates for Home Depot, he maintains a Buy rating, asserting that Home Depot remains the highest-quality investment option for an eventual housing recovery, bolstered by unmatched scale and customer penetration.
See More
Citi Bullish on Lowe's Ahead of Earnings Report
- Rating Upgrade: Citi upgraded Lowe's from neutral to buy while maintaining a $285 price target, indicating a 26% upside from Monday's close, reflecting strong confidence in the company's future performance.
- Optimistic Earnings Outlook: While analysts expect only marginal growth for Lowe's Q1 results, Citi's analyst Steven Zaccone believes the company will beat street estimates and continue to outperform the industry through 2026, showcasing confidence in a multi-year recovery.
- Market Performance Analysis: Despite economic uncertainties impacting consumer sentiment, Lowe's has shown consistent strength in same-store sales, with Zaccone noting four consecutive quarters of positive same-store sales, a trend expected to continue through 2026.
- Industry Growth Potential: According to Global Market Insights, the home improvement market is projected to grow at a 4.1% CAGR to $1.4 trillion by 2035, indicating that Lowe's presents an attractive investment opportunity in the industry's recovery.
See More
Home Depot Canada Foundation Launches Orange Door Project Spring Campaign
- Fundraising Goal: The Home Depot Canada Foundation aims to raise $1.3 million during the 2026 spring Orange Door Project campaign to support youth-serving organizations nationwide, continuing its efforts to combat youth homelessness.
- Historical Achievement: In 2025, the foundation raised $2.9 million, demonstrating its ongoing impact and customer support in addressing youth homelessness.
- Donation Matching: On May 23, Home Depot will match all donations made in-store and online for the first time, amplifying the impact of every contribution and encouraging more customer participation.
- TradeWorx™ Initiative: By selling TradeWorx™ baseball caps, the foundation not only provides skills training and certifications to youth but also helps over 200 young people secure stable job opportunities, promoting their independence and housing stability.
See More
The Home Depot Acquires Mingledorff's to Enhance HVAC Business
- Acquisition Completed: On May 11, 2026, SRS Distribution, a subsidiary of The Home Depot, completed the acquisition of Mingledorff's, adding a new HVAC distribution vertical that expands its market share significantly.
- Significant Market Potential: The HVAC distribution market has a total addressable market of approximately $100 billion, and this acquisition increases The Home Depot's total addressable market to $1.2 trillion, enhancing the company's competitive position.
- Enhanced Professional Services: CEO Ted Decker stated that the acquisition strengthens SRS's high-growth distribution engine, providing a more comprehensive range of products and services to meet professional contractors' needs, thereby driving cross-selling synergies.
- Optimized Customer Experience: SRS CEO Dan Tinker emphasized that by integrating Mingledorff's HVAC expertise, SRS will offer greater convenience to professional customers, enhancing customer loyalty and promoting business growth.
See More
Stock Market Gains at Risk Without Rate Cuts, Says Jim Cramer
- Inflation Pressure Intensifies: The consumer price index rose 0.6% in April, pushing the annual inflation rate to 3.8%, which diminishes the likelihood of Federal Reserve rate cuts and impacts the sustainability of stock market gains.
- Bond Market Impact: The hotter-than-expected inflation data caused the 2-year Treasury yield to briefly reach 4%, indicating that investors are dialing back expectations for future rate cuts, potentially putting more pressure on the stock market.
- Sector Rotation Weakness: While the rotation into previously beaten-down sectors like healthcare is encouraging, Cramer warns that without support from the bond market, sustained stock market gains will be challenging, urging investors to remain cautious.
- War's Economic Impact: Cramer highlights that rising oil prices due to the Iran war are increasing costs across various categories, further narrowing investors' opportunities, particularly affecting stocks like Home Depot that rely on lower borrowing costs.
See More
US Stocks Retreat as Cramer Analyzes Market Dynamics
- Market Pullback: On Tuesday, the S&P 500 retreated due to a hotter-than-expected April consumer price index and spikes in oil and bond yields, indicating market sensitivity to rising rates, with Jim Cramer noting this adjustment is necessary for AI-related stocks.
- Home Depot Outlook: Despite struggling in a high-interest-rate environment, Jim Cramer remains bullish on Home Depot, believing it will outperform Lowe's, with Citi rating Home Depot as a buy, reflecting confidence in its future earnings potential.
- Nvidia Price Fluctuation: Nvidia shares slipped from a fresh intraday high ahead of its earnings report, although Wells Fargo raised its price target to $325, Jim Cramer advises investors to hold onto the stock, emphasizing its critical role in the market.
- Rapid Recap: At the end of the video, Jim Cramer mentioned stocks including FedEx, On Holding, Under Armour, Lowe's, and eBay, highlighting his focus on a diversified investment portfolio.
See More
Citi Analyst Upgrades Lowe's to Buy Amid Recovery Prospects
- Sales Growth Trend: Citi Research analyst Steven Zaccone highlights that Lowe's has achieved four consecutive quarters of same-store sales growth, indicating a stronger market exposure in the DIY-led recovery, which has prompted an upgrade of its stock rating from Hold to Buy, reflecting market confidence in its future performance.
- Macro Risk Assessment: Despite external risks from geopolitical conflicts, interest rates, and the housing market, Zaccone believes that Lowe's shares present an attractive risk/reward profile after the recent pullback, especially against the backdrop of strong spring performance, with expectations for the company to exceed first-quarter forecasts.
- Market Demand Potential: Zaccone anticipates that 2026 will be a year of gradual improvement, even if growth is slightly lower, as pent-up demand for home improvement spending is expected to rise due to increased existing home sales and lower rates, providing support for Lowe's long-term growth.
- Competitor Analysis: While Zaccone has slightly trimmed his full-year estimates for Home Depot, he maintains a Buy rating, asserting that Home Depot remains the highest-quality investment option for an eventual housing recovery, bolstered by unmatched scale and customer penetration.
See More
Citi Bullish on Lowe's Ahead of Earnings Report
- Rating Upgrade: Citi upgraded Lowe's from neutral to buy while maintaining a $285 price target, indicating a 26% upside from Monday's close, reflecting strong confidence in the company's future performance.
- Optimistic Earnings Outlook: While analysts expect only marginal growth for Lowe's Q1 results, Citi's analyst Steven Zaccone believes the company will beat street estimates and continue to outperform the industry through 2026, showcasing confidence in a multi-year recovery.
- Market Performance Analysis: Despite economic uncertainties impacting consumer sentiment, Lowe's has shown consistent strength in same-store sales, with Zaccone noting four consecutive quarters of positive same-store sales, a trend expected to continue through 2026.
- Industry Growth Potential: According to Global Market Insights, the home improvement market is projected to grow at a 4.1% CAGR to $1.4 trillion by 2035, indicating that Lowe's presents an attractive investment opportunity in the industry's recovery.
See More
