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Here is a positive Lowe's snippet from Cramer's recent 'Mad Money' Recap...
The full article can be found here...

Cramer warned his viewers not to believe everything they hear, as general Wall Street gibberish will lose them money, he said. Instead, he said people should do their own homework.

As long as people know what makes a stock cheap, they can figure out the company's fundamentals themselves, he said.

A day doesn't go by without someone talking about how either Home Depot or Lowe's (LOW) is cheap based on the company's fundamentals.

Both of the big home-improvement retailers are at or near their 52-week lows. But in a head-to-head comparison, only one of the companies is actually cheap, Cramer said.

"The truth is a bad investor knows the price of everything and the value of nothing," Cramer said. But stocks are more than just price deep.

The first way to check whether a stock is cheap or not is to compare it with the S&P 500. This is the gold standard of benchmarks, he said.

The S&P 500's multiple is 16. While Lowe's trades at 14.8 times its trailing earnings, Home Depot trades at 12 times these numbers. Thus, both of these stocks are potentially cheap compared with the benchmark.

Step two, said Cramer, is to compare Home Depot with Lowe's. Home Depot trades at a lower multiple to its 2007 estimates than Lowe's. But a company's growth rate determines its multiple, and in this case Lowe's growth rate tells us that the stock is actually cheaper than Home Depot.

In terms of margins and management, Cramer believes that Lowe's has an upper hand in both cases.

Even though numbers are important, growth is also important. Home Depot has nearly hit the saturation point in the market with more than 2000 stores and is probably finished growing.

Lowe's is about half the size of Home Depot and has plenty of room to expand, Cramer said.

Therefore, Lowe's is the cheaper stock, Cramer concluded.

Whatta Deal!


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