The Home Depot, Inc. (HD) Fell Because Of Sherwin-Williams, Says Jim Cramer

We recently published 11 Stocks That Jim Cramer Recently Talked About. The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer recently discussed.

The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retailers in America. Its shares have lost 2.9% year-to-date due to persistent sluggishness in the housing market. In his previous remarks about the firm, Cramer also attributed some of the weakness surrounding The Home Depot, Inc. (NYSE:HD) to a slow gardening season. This time, he discussed the impact of Sherwin-Williams’ bearish outlook for H2 2025 on the shares:

“Home Depot’s up seven and my charitable trust owns that. And now I look at that and I think that’s because of Horton being up and Lennar being up and Pulte being up. But that’s not what references, it’s Sherwin Williams. And that means that maybe it’s too high.”

In an earlier appearance, the CNBC TV host commented on The Home Depot, Inc. (NYSE:HD)’s link to the housing market:

“Home Depot, now here’s a company that’s seen as being synonymous with the housing market, and the housing market stinks. Well, not enough homes being sold, gotta be bad, right? Well, wait a second. This stock’s now been in the doghouse for ages. It’s also why we’ve been buying for the Charitable Trust. Like Costco, people don’t seem to want to buy Home Depot unless it’s within spitting distance of its highs. They want to buy Home Depot when it’s hot. I want to buy Home Depot when it’s not.

First, let’s deal with this big misperception about Home Depot. It’s not just about home sales. It’s geared to remodeling and renovation. That’s why the despot just spent $18.5 billion to buy a company called SRS Distribution last year that helps contractors with building materials, mainly roofing and pool supplies, and landscaping.

They just spent $5.5 billion on GMS, a drywall, steel framing, and ceiling products distributor. In other words, in the last year, Home Depot’s only improved its position in remodel and renovation while it waits for the housing market to come back. Now, why does this matter? Because you don’t get many chances to buy the stock of Home Depot at a considerable discount to its high. People would rather buy Home Depot at $439, its high from last year, than $373, where it’s trading now. I look at it like this: How often can you buy a quality franchise like Home Depot when it’s not running, when it’s not near its high? Not often.”

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Disclosure: None. This article is originally published at Insider Monkey.