Home Depot faced a tough 2024 due to high interest rates, impacting big-ticket home improvement projects. However, signs of recovery appeared as the year progressed, notably after the Federal Reserve initiated rate cuts starting in September. This shift increased optimism about housing turnover, which had reached a 30-year low. As of year-to-date performance, Home Depot’s stock rose 12%, with expectations for further growth in 2025 due to anticipated falling mortgage rates. Their strategic focus on professional contractors, reinforced by acquisitions, positions them favorably despite risks from ongoing bond yield fluctuations. Rating: Buy-equivalent; Price target: $440 per share.
