Home Depot's Dual Focus: DIY Revival Meets Pro Acceleration

The Home Depot, Inc. HD is skillfully navigating a shifting home improvement landscape by balancing renewed momentum in do-it-yourself (DIY) projects with accelerating growth in its professional (Pro) customer base. In the second quarter of fiscal 2025, sales rose 4.9% year over year to $45.3 billion, marking the strongest performance in more than two years. This rebound reflects both resilient consumer demand for smaller-scale home improvement projects and the company’s focus on enhancing the customer experience through technology, supply chain efficiency and faster delivery capabilities.

Home Depot’s “Pro acceleration” strategy remains a key growth pillar. The integration of SRS Distribution has exceeded expectations, providing deep access to specialty trade professionals while expanding the company’s presence across roofing, landscape and pool categories. Its pending acquisition of GMS, a leader in drywall and building materials, will further enhance the company’s Pro ecosystem by adding over 1,200 distribution locations and a vast delivery network. These moves strengthen HD’s capacity to serve complex Pro projects and capitalize on a fragmented $1 trillion total addressable market.

At the same time, Home Depot is seeing a revival in DIY activity as consumers pivot to smaller, more affordable home projects amid elevated borrowing costs. Categories like storage, paint and seasonal goods posted strong gains, with 12 of 16 departments delivering positive comparable sales. This balanced performance underscores the company’s adaptability, leveraging Pro expansion to offset cyclical softness in big-ticket remodeling while reigniting DIY demand through convenience, innovation and value.

How Lowe’s and Floor & Decor Stack Up Against HD

Lowe's Companies, Inc. LOW is sharpening its competitive edge by leaning into operational efficiency, Pro customer expansion and disciplined cost control — a strategy designed to close the gap with Home Depot. The retailer continues to streamline its product assortment and optimize inventory through its “Total Home” strategy, which emphasizes complete project solutions for both DIY and Pro customers. While the DIY segment remains soft amid higher interest rates, Lowe’s has made notable strides in the Pro space, growing sales through enhanced job-site delivery, trade credit programs and improved fulfillment capabilities.

Floor & Decor Holdings, Inc. FND stands out as a high-growth specialist in the hard-surface flooring segment, offering a differentiated model built on value, assortment and Pro engagement. Unlike Home Depot and Lowe’s, FND operates a warehouse-style format that prioritizes direct sourcing and low prices, appealing strongly to both professional installers and value-conscious homeowners.

What the Latest Metrics Say About Home Depot

Home Depot shares have declined 7% in the past year compared with the industry’s fall of 9%.

From a valuation standpoint, Home Depot trades at a forward price-to-sales ratio of 2.28X, higher than the industry’s 1.62X.

The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 2.9%, while the same for earnings per share suggests a decline of 1.4%.

HD stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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