Home Depot has experienced a mixed year, rising 7%, yet underperforming versus the S&P 500's 16% gain, as market expectations and interest rates fluctuated.
With the Fed expected to cut rates soon, Home Depot aims to capitalize on increased housing turnover, strongly linked to mortgage rates falling below 6.5%.
CEO Ted Decker noted that as mortgage rates dipped below 6.5%, the company witnessed a marked increase in housing activity and mortgage applications.
The stock remains significantly lower than its late 2021 peak of $415, attributed to a housing market slowdown following a series of Fed rate hikes.
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