5 Best COVID Stocks To Buy According To Hedge Funds

4. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) is an American home improvement retailer that provides building materials, lawn and garden equipment, and decor products. The COVID-19 pandemic has had a material impact on the home improvement sector. The Home Depot, Inc. (NYSE:HD) posted a record $40 billion in sales in the last 2 years, citing higher home improvement spending by individuals in lockdowns during the pandemic. 

On November 17, The Home Depot, Inc. (NYSE:HD) declared a $1.90 per share quarterly dividend, in line with previous. The dividend is payable on December 15, to shareholders of record on December 1. The dividend yield on November 25 came in at 2.36%. 

JPMorgan analyst Christopher Horvers on November 16 raised the price target on The Home Depot, Inc. (NYSE:HD) to $328 from $300 and maintained an Overweight rating on the shares. The company posted an in-line Q3 and guidance, the analyst told investors in a research note.

According to Insider Monkey’s data, 89 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) at the end of Q3 2022, compared to 80 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a significant stakeholder of the company, with 2.3 million shares worth $644 million. 

Diamond Hill made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter:

“The Home Depot, Inc. (NYSE:HD) shares were more resilient in Q3 as the company continues to perform well and reiterated guidance despite increasing market concerns regarding general inflationary pressures and the impact rising mortgage rates may have on the housing market. We view the longterm prospects and multi-year fundamental outlook as unchanged. Home improvement through repair and remodel is likely to be one of more resilient housing-related industries given the relative attractiveness for consumers to renovate existing homes rather than reset their current low fixed mortgage rate to higher rates that we’re seeing today.”