Home Depot is looking to capitalize on the peak spring season with its Memorial Day sales event, offering meaningful discounts to attract consumers. According to “Jim Cramer,” the next couple of weeks are like “Christmas” for home improvement retailers. The success of these sales is crucial, as warm weather and seasonal gardening trends traditionally boost the company’s revenue.

The second quarter, encompassing May, June, and July, is typically Home Depot’s strongest. FactSet’s consensus estimates anticipate a 5.3% year-over-year revenue increase, reaching $45.48 billion. However, tariff uncertainties and elevated mortgage rates could impact these projections. Investors are keenly awaiting the company’s first-quarter earnings report for insights into future performance.

“I continue to like Home Depot even though it’s contrary to what you’re seeing,” said Jim.

Bernstein analysts foresee a challenging first quarter for Home Depot, citing “unfavorable weather, weak consumer sentiment, and mixed performance from peers and suppliers.” LSEG data suggests a consensus revenue of $39.3 billion, an 8% increase from the previous year, with earnings per share expected to be $3.59,a slight annual decrease.

While weather and outdoor sales are crucial, Home Depot’s stock performance is closely linked to the housing market. Although the average 30-year fixed-rate mortgage hovers near 7%, buyer demand has shown recent increases. A Morgan Stanley survey indicated that contractors are seeing a resurgence in demand for larger projects, anticipating further growth later in the year, aligning with potential Federal Reserve rate cuts. “Jim” has stated that mortgage rates need to fall below 6.5% to stimulate the housing market.

Tariff concerns also loom, though potential de-escalation between the U.S.and China could alleviate some pressure. Stanley Black & Decker’s recent rating upgrade may signal positive momentum. UBS analysts noted that tariff-related risks could lead to a “more robust recovery down the road.” Home Depot CEO “Ted Decker” has expressed confidence in the company’s ability to navigate tariff challenges.

Year-to-date, Home Depot’s shares have decreased by approximately 2.5%, while the S & P 500 has seen a gain of nearly 1%. Home Depot stock is currently about 12% below its record high of just over $431 on Dec. 6.