5 Best Hardware Stocks To Buy Now

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

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) is among the largest home improvement retailers in the world and is placed among the top five hardware stocks to buy now. The Home Depot, Inc. (NYSE:HD) is a profitable company with a healthy balance sheet and abundant cash resources. According to the company’s balance sheet, The Home Depot, Inc. (NYSE:HD) has a trailing twelve-month operating margin of 15.50% and free cash flows of over $10 billion.

On November 16, JPMorgan analyst Christopher Horvers raised his price target on The Home Depot, Inc. (NYSE:HD) to $328 from $300 and maintained an Overweight rating on the shares.

At the close of the third quarter of 2022, 89 hedge funds were eager on The Home Depot, Inc. (NYSE:HD) and disclosed stakes of $5.61 billion in the company. This is compared to 80 positions in the previous quarter with stakes worth $5.35 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management was the top investor in the company and held stakes worth $2.25 billion.

Here is what Diamond Hill Capital had to say about The Home Depot, Inc. (NYSE:HD) in its third-quarter 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.”

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