5 Best Seasonal Stocks To Buy Now

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

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) is one of the best seasonal stocks to invest in. The company operates as a home improvement retailer, selling building materials, home improvement products, lawn and garden products, and decor products. For full-year 2022, The Home Depot, Inc. (NYSE:HD) expects total sales growth and comparable sales growth of approximately 3% and an operating margin of nearly 15.4%. 

Cowen analyst Max Rakhlenko on December 13 raised the price target on The Home Depot, Inc. (NYSE:HD) to $379 from $350 and maintained an Outperform rating on the shares. The analyst said they exemplify best-in-class retail execution with leading Pro share and a growing flywheel that should serve the company well into a constrained macro backdrop into 2023.

According to Insider Monkey’s data, 89 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) at the end of the third quarter of 2022, compared to 80 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with 8.16 million shares worth $2.25 billion. 

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

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

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