Home Depot is worth the wait, according to Jim Cramer.

• Despite Home Depot's recent lackluster quarter, CNBC's Jim Cramer advised investors to remain loyal to the company.
• He said that although the quarter wasn't great, he found the conference call commentary encouraging, so he was willing to be patient and hold on to Home Depot.

Despite its recent lackluster quarter, CNBC's Jim Cramer advised investors to hold onto the stock of the home improvement retailer.

"Although the quarter wasn't impressive, the conference call commentary I found optimistic has made me patient and willing to hold onto Home Depot," he stated.

Despite the cooler demand, Home Depot on Tuesday reported that its quarterly sales declined nearly 3% year over year, but it still surpassed Wall Street's earnings and revenue expectations.

In a conversation with CNBC, Home Depot's CFO, Richard McPhail, stated that declining lumber prices and rising interest rates negatively impacted the company's performance. However, he expressed optimism that the business could recover and achieve growth once again.

Cramer characterized management's outlook as "conservatively optimistic," indicating that the company is hopeful but not yet ready to declare a definitive turnaround.

During Home Depot's conference call, CEO Ted Decker's candid remarks about the company's inventory issues encouraged him. Decker stated that although Home Depot began 2023 with more inventory than he desired, he is now pleased with the progress made and feels "very good about our inventory position" going into 2024. With inventory under control, the company is now positioned for a better future, as Cramer said.

Although the Federal Reserve may not make as many rate cuts as Wall Street had hoped, Cramer believes that rates will still ultimately decrease, which is beneficial for companies related to housing.

The spring planting season, which is like Christmas for any retailer with a gardening business, is a catalyst for Home Depot. Additionally, it is likely that management intentionally gave a conservative forecast, as they enjoy exceeding expectations at Home Depot.

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