Welcome to the Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in the world of investing. Today, we’re diving into the potential benefits Home Depot could reap from the Federal Reserve’s rate-cutting cycle.
According to Telsey Advisory Group, Home Depot is poised to thrive amidst the current economic climate. As the investment firm upgraded the home improvement retailer to outperform from market perform, shares are expected to see a 14% upside from Thursday’s close, with a new price target of $455.
Analyst Joseph Feldman highlighted key factors driving Home Depot’s potential growth, including upcoming Fed rate cuts. With the Federal Reserve embarking on a new rate-cutting cycle, lower interest rates could stimulate increased consumer spending in the home improvement sector.
Additionally, Home Depot stands to benefit from hurricane recovery efforts following hurricanes Helene and Milton. The anticipated recovery could extend through multiple quarters in 2025, creating a favorable outlook for the company.
Moreover, Feldman pointed out that Home Depot’s Pro business presents a significant growth opportunity. As post-pandemic demand trends normalize and easier comparisons lead to better sales results, the company is expected to outperform the S&P 500 over the next year.
But Home Depot is not the only player in the home improvement sector set to flourish. Feldman also upgraded shares of Lowe’s to outperform from market perform, with a price target of $305. With a similar projection for solid sales and earnings growth in 2025, Lowe’s shares have already rallied 20% year-to-date.
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