Home Depot reported quarterly results Tuesday that topped Wall Street's profit estimates and boosted its fiscal-year earnings guidance, prompting Jim Cramer to look for second-derivate trades on the good news.
The company's second quarter, which ended on July 29, is typically the most important selling period for home improvement chains, but unseasonably warm weather early in the year pulled some demand into the first quarter. Luckily, Home Depot said tight cost controls helped it offset sales weakness. In turn, at least two brokerages raised their price targets on the firm. Its stock closed sharply higher. (Read More: Home Depot Earnings Beat Forecasts, Ups Guidance)