The stock market continues to scream higher in 2018 and Lowe's (LOW) - Get Report stock is only adding fuel to the fire.

Shares are jumping Tuesday, the first trading day of the holiday-shortened week. Up more than 4% 30 minutes into the morning trading session, shares have pared some of those gains, now up just 2.7%.

Lowe's stock is rallying after reports of activist investor D.E. Shaw building a stake in the company. However, there are more reasons to buy Lowe's than D.E. Shaw, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" show.

"There's a lot of reasons to buy Lowe's," he said. For starters, Credit Suisse analyst Seth Sigman bumped his price target on the stock to $116 from $88. Sigman reiterated his outperform rating on Lowe's stock. Despite Tuesday's jump, the reasoning from Credit Suisse to buy Lowe's remains valid, Cramer said. 

Clearly investors are willing to pay a higher premium for these high-quality stocks, as the valuation has crept higher for both Lowe's and Home Depot (HD) - Get Report .

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After missing both earnings and revenue estimates for two consecutive quarters, Lowe's delivered an impressive result in November. After beating on earnings and revenue forecasts, Lowe's delivered comp-store sales growth of 5.1%. That comp-store sales growth handedly outpaced its results for the first two quarters of Lowe's fiscal year. Holiday estimates for retailers have been coming in strong, too. 

"What a stock, what a horse, what a retailer," concluded Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.

Lowe's stock slipped throughly Tuesday's session, ending the day at $100.97, up just 0.12%. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.