Jim Cramer expressed optimism on Home Depot, stating the stock is trading below his intrinsic valuation estimate. The sentiment, shared on December 13, 2025, may influence short-term investor positioning in the consumer discretionary sector.
- Jim Cramer stated Home Depot (HD) is trading below his intrinsic valuation estimate as of December 13, 2025.
- HD reported $3.2 billion in earnings and $37.8 billion in revenue for Q3 FY2025, with same-store sales up 7.9% YoY.
- The stock is currently trading around $345, below its 52-week high of $357.80.
- HD’s forward P/E of 22.4 is below its five-year average of 24.1, supporting value-based arguments.
- Options activity shows increased call buying, suggesting rising investor interest.
- HD's free cash flow reached $10.3 billion in FY2025, underpinning dividend sustainability.
Jim Cramer publicly asserted that Home Depot (HD) is currently trading below what he believes the company's fundamentals justify. Speaking on a recent market segment, Cramer emphasized that the retailer's current stock price fails to reflect its earnings potential and operational strength. While he did not disclose a specific target price, his comment implies a significant gap between market valuation and perceived intrinsic value. Home Depot reported fiscal 2025 third-quarter earnings of $3.2 billion on $37.8 billion in revenue, with a 7.9% year-over-year increase in same-store sales. The company's adjusted earnings per share reached $3.06, surpassing analyst expectations by $0.14. Despite these positive metrics, HD shares have fluctuated around $345 in early December 2025, slightly below the 52-week high of $357.80. Cramer’s commentary comes amid broader market skepticism toward big-box retailers, though Home Depot continues to outperform peers like Lowe’s (LOW), which reported a modest 1.2% same-store sales growth in the same quarter. Analysts note that HD’s consistent dividend growth—12% annual increase over the past five years—and strong free cash flow of $10.3 billion in FY2025 reinforce its defensive positioning in the consumer discretionary sector. The remark has prompted a modest uptick in trading volume for HD, with options activity indicating increased call buying. Institutional investors are monitoring the sentiment shift, particularly as the stock trades at a forward P/E of 22.4, below its five-year average of 24.1. While not a definitive buy signal, Cramer’s view adds weight to existing bullish arguments in a sector where value-based strategies are regaining traction.