5 Best Cyclical Stocks To Invest In

In this article, we discuss the 5 best cyclical stocks to invest in. If you want to read about some more cyclical stocks, go directly to 14 Best Cyclical Stocks To Invest In.

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

Number of Hedge Fund Holders: 68  

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. In mid-August, the company beat market expectations on earnings per share and revenue for the second quarter of 2023. The board of directors of the company also announced they had authorized a $15 billion share buyback program, replacing the previous program. The firm reaffirmed 2023 outlook and the CEO said that there was positivity on the medium-to-long term outlook for home improvement and the ability to grow share in a large and fragmented market. 

On October 5, Truist analyst Scot Ciccarelli maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) stock and lowered the price target to $341 from $372, noting that card data suggested that retail spending trends had softened at the margin over the last few weeks. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in The Home Depot, Inc. (NYSE:HD) with 2 million shares worth more than $641 million. 

In its Q3 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:

“We updated the sustainable scorecard for The Home Depot, Inc. (NYSE:HD) and maintained our Above Average Rating. Home Depot’s corporate responsibilities focus on three pillars: focusing on its people, operating sustainably, and strengthening its communities. Home Depot continues to focus on its people by investing billions of dollars in wages, training, and benefit enhancement. The company’s environmental targets include the reduction of direct (Scope 1) and indirect (Scope 2) emissions by 42% by 2030, as well as a 25% decrease in emissions related to the “use of products sold” (Scope 3 emissions). Both targets are from a 2020 base year.

Separately, The Home Depot Foundation announced that it will invest $6 million in skilled trades training to address the 400,000 job openings across the construction industry. This grant launches a new program that will provide free, skilled trades training and scholarships for veterans and military families.”