Home Depot Inc. (HD): Are Hedge Funds Right About This Stock?

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Let’s also examine hedge fund activity in other stocks similar to Home Depot Inc. (NYSE:HD). We will take a look at Intel Corporation (NASDAQ:INTC), Citigroup Inc. (NYSE:C), HSBC Holdings plc (ADR) (NYSE:HSBC), and Novo Nordisk A/S (ADR) (NYSE:NVO). This group of stocks’ market valuations are closest to HD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
INTC 56 4344035 11
C 106 9970358 -15
HSBC 8 537971 -7
NVO 14 1980025 -3

As you can see these stocks had an average of 46 hedge funds with bullish positions and the average amount invested in these stocks was $4.21 billion. That figure was $3.72 billion in HD’s case. Citigroup Inc. (NYSE:C) is the most popular stock in this table. On the other hand HSBC Holdings plc (ADR) (NYSE:HSBC) is the least popular one with only 8 bullish hedge fund positions. Home Depot Inc. (NYSE:HD) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard C might be a better candidate to consider a long position.

Disclosure: None

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