While the housing market is cooling down, the remodeling segment of the sector continues to be hot.

There should be strong growth, according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.  The increase is expected to be in the double digits.  Home Depot (NYSE: HD) is ideally situated to profit from more activity in remodeling.

A member of the Dow Jones Industrial Average (NYSE: DIA), Home Depot has soared in the revitalized American housing market along with homebuilders such as DR Horton (NYSE: DRH).

For the last quarter, DR Horton is up more than 22 percent.  Over the last year, Home Depot has risen nearly 30 percent.  Home Depot has done well over the last quarter, too.  The housing sector has obviously recovered from The Great Recession.

But remodeling is bullish for Home Depot and not for DR Horton.

DR Horton needs for buyers to purchase new homes.  That helps Home Depot, too.  All homes require the goods and services of Home Depot.  But those remodel are staying in their present home, not buying a new house.  When that happens, DR Horton loses a potential customer.

The earnings growth component is very bullish for Home Depot, partially resulting from the remodeling increase.

For the quarter, year, and five year period ahead, earnings-per-share growth for Home Depot is projected to be in the double digits.  That is a solid growth from the 5.70 percent earnings-per-share increase from the previous half decade.  Sales growth has been strong, too.

That can be expected to continue with remodeling activity estimated to increase in the double digits.

Now trading around $81.15 a share, the one year target price for Home Depot from the analyst community is $87.98.  On November 20, 2013, RBCa Capital Markets raised its target for Home Depot to $92 a share.