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Home Depot Thrives Amid Shifting Home Improvement Trends
17 Aug
Summary
- Home Depot's stock gains 2.8% YTD, up 8.7% since July 2025
- Cramer cites interest rate cuts and home building as factors
- Cramer notes Home Depot's performance is a "thesis play"
As of August 17, 2025, Home Depot, the home improvement retailer, has seen its stock gain a modest 2.8% year-to-date, with an 8.7% jump since July. Investors appear to be betting on growing home building and renovation, fueled by interest rate cuts from the Federal Reserve following a surprising jobs report.
According to Jim Cramer, the stock's performance is a "thesis play," meaning it is a buy based on the belief that there will be a double rate cut. However, Cramer notes that he does not think the actual business is strong right now, partly due to a poor gardening season.
Previously, Cramer had discussed Home Depot in the context of home building stocks, noting that the company's stock price was likely buoyed by the strong performance of other home-related stocks like Horton, Lennar, and Pulte. But Cramer also pointed out that the stock's rise may have been more closely tied to the performance of Sherwin-Williams, a paint manufacturer.
While the article acknowledges the potential of Home Depot as an investment, it suggests that some AI stocks may hold greater promise for delivering higher returns with limited downside risk.
