Cramer Says Home Depot Deserves 'The Benefit Of The Doubt'

Home Depot Inc HD not only reported a revenue miss in its first-quarter results, but cautioned investors it's seeing a "slow start" to the spring shopping season. CNBC's Jim Cramer says the sell-off in Home Depot's stock is unwarranted and should be bought.

What Happened

Home Depot reported an earnings beat, but revenue of $24.947 billion fell short of the $25.22 billion analysts were expecting. The revenue shortfall not only prompted a sell-off in the retailer's stock, but the Dow heavyweight component contributed to a triple-digit decline in the index.

Home Depot's earnings was impacted by poor weather trends -- often an excuse used by companies to justify a poor quarter. But in Home Depot's case, management "deserves the benefit of the doubt," Cramer said on Tuesday's "Squawk on the Street."

"Everyone likes to go to Home Depot for the planting season," Cramer said. "And the weather wasn't there."

What's Next

Home Depot's business has a "stickiness" to it, Cramer said. Specifically, if consumers didn't visit their local Home Depot stores in the first quarter they will likely do so in the second quarter.

Rival Lowe's Companies, Inc. LOW reports its first-quarter results May 23. As has been in the case for some time, Home Depot reports better earnings, same-store sales and growth compared to Lowe's, Cramer said.

"By the time next week when Lowe's reports, we're all going to say to ourselves, 'Shoot, that Home Depot was such an opportunity,'" Cramer said.

Home Depot's stock traded around $187.76 at time of publication, down 1.8 percent on the day.

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