5 Value Stocks to Buy According to Joel Greenblatt

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

Number of Hedge Fund Holders: 68   

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. The latest data shows that Gotham Asset Management owned 29,811 shares of the firm at the end of December 2021 worth $12.3 million, representing 0.39% of the value of its 13F portfolio. The firm dumped about 20% of its stake in the firm during the fourth quarter of 2021. 

On February 25, investment advisory Edward Jones upgraded The Home Depot, Inc. (NYSE:HD) to ‘Buy’ from ‘Hold’, though without a price target. The ratings update was issued by analyst Brian Yarbrough. 

Among the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder in The Home Depot, Inc. (NYSE:HD) with 7.8 million shares worth more than $3.2 billion. 

In its Q4 2021 investor letter, Ensemble 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:

“On the more positive side, we saw notable performance contribution from The Home Depot, Inc. (NYSE:HD). In the midst of a housing shortage and rising home prices, Americans turned to home improvement projects with Home Depot’s startlingly fast growth in 2020 continuing throughout 2021. With each quarter that passed showing a continuation of strong growth rather than the slowdown that many investors expected, the stock led the S&P 500 for most of the year and turned in a heady 27% rally in the fourth quarter to close out the year. Notably, while Do It Yourself homeowners did indeed shop at The Home Depot, Inc. (NYSE:HD) less than they did during record setting 2020, almost half of the company’s revenue comes from Pro contractors where strong growth continues.”