{"id":1266124,"date":"2026-05-15T11:53:05","date_gmt":"2026-05-15T08:53:05","guid":{"rendered":"https:\/\/www.etoro.com\/?p=1266124"},"modified":"2026-05-19T14:58:35","modified_gmt":"2026-05-19T11:58:35","slug":"deep-dive-home-depot-becomes-a-diy-project","status":"publish","type":"post","link":"https:\/\/www.etoro.com\/en-us\/news-and-analysis\/market-insights\/deep-dives\/deep-dive-home-depot-becomes-a-diy-project\/","title":{"rendered":"Deep Dive: Home Depot Becomes a DIY Project"},"content":{"rendered":"

Shares of Home Depot have struggled in recent years, as interest rates delay big renovation projects. The Daily Breakdown takes a deep dive.<\/p>\n

Interested in more Deep Dive content? Check out <\/span><\/i>our latest research<\/span><\/i><\/a>.\u00a0<\/span><\/i><\/p>\n

Deep Dive<\/b><\/h2>\n

Home Depot<\/a> is the world\u2019s largest home improvement retailer. The company serves both DIY customers and professionals, while also offering installation services and equipment rentals. The company now commands a $300 billion market cap, making it one of the 40 largest companies in the S&P 500<\/a>. However, the stock has struggled, falling about 12% so far this year and more than 30% from its November 2024 peak.<\/span><\/p>\n

For better or worse, Home Depot\u2019s business \u2014 and sentiment around HD stock \u2014 is heavily influenced by interest rates. When rates are high or moving higher, more homeowners tend to delay large renovation projects as financing costs rise. When rates fall or remain low, consumers are more likely to renovate, creating a potential tailwind for Home Depot.<\/span><\/p>\n

Here\u2019s what CEO Ted Decker had to say at the company\u2019s most recent Investor Day when it came to consumers and interest rates: \u201cThe elevated interest rate and mortgage rate environment since 2023 has stifled housing turnover\u2026which has significantly reduced demand for projects associated with buying and selling a home.\u201d<\/span><\/p>\n

More recently, he noted, \u201cCustomers are telling us that they’re not investing in large projects, and that has everything to do with consumer confidence and sentiment, jobs picture, overall price levels, and affordability in the economy.\u201d<\/span><\/p>\n

Rising Dividend Yield, Stifled Earnings Growth<\/b><\/h4>\n
\"Fundamental
Source: Bloomberg, eToro. 5\/14\/2025<\/em><\/figcaption><\/figure>\n

Notice how the company\u2019s net income (in orange) spiked from 2020 through 2022 \u2014 during the housing boom \u2014 but has plateaued over the past few years. Conversely though, notice how the dividend yield (in blue) has moved higher, now at a multi-year high and above 3%.\u00a0<\/span><\/p>\n

According to Bloomberg, analysts project the following:<\/span><\/p>\n