5 Best Seasonal Stocks to Buy Now

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

Number of Hedge Fund Holders: 80   

The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. The company is one of the most prominent seasonal stocks to invest in. The firm has a solid dividend history. It has consistently paid a dividend to shareholders for the past twenty years. In the past fourteen years, these payouts have also registered consistent growth. On August 18, the firm declared a quarterly dividend of $1.90 per share, in line with previous. The forward yield was 2.34%. The board of directors also authorized a new $15 billion share repurchase program recently. 

On August 17, Truist analyst Scot Ciccarelli maintained a Buy rating on The Home  Depot, Inc. (NYSE:HD) stock and raised the price target to $399 from $375, appreciating the strong second quarter earnings of the firm. 

At the end of the second quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $5.4 billion in The Home Depot, Inc. (NYSE:HD), compared to 75 in the preceding quarter worth $5.6 billion. 

In its Q1 2022 investor letter, Diamond Hill Capital, 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:

“The Home Depot, Inc. (NYSE:HD) shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”