We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other Dow stocks.
The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.
It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.
We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.
Methodology
In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.
We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A home improvement store overflowing with a variety of products and supplies.
The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
Short Interest as of Apr 30, 2025: 1.02%
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. It sells different home improvement products, decor products, building materials, and lawn and garden products.
The company’s chief executives recently held a meeting with President Donald Trump to review tariff consequences on the business. The meeting was centered on the potential impacts of broader tariffs on imported goods. According to President Trump, the meeting was productive.
The company shared sentiments about the meeting through a statement:
“We had an informative and constructive meeting with the President and look forward to continuing the dialogue.”
The struggling retail sector will need all the support it can get from the President, who is adamant on tariff measures that may result in inflation.
Investors have also reacted positively to the recent earnings after being impressed by the positive comparable sales growth. After two years of decline, analysts noted it as a significant achievement. Jefferies analyst Jonathan Matuszewski also noted a significant rise in comparable transactions.
Managing director of GlobalData, Neil Saunders, highlighted:
“The fact that US comparable sales are back in the black after declining for eight quarters or two years is a very clear win for Home Depot, and it suggests that the home improvement market as a whole might finally be reaching the nadir of its more sluggish performance.”
Going forward, the company expects total sales growth of 2.8% along with the comparable sales growth of 1%. Operating margin is anticipated to be 13% however, gross margin is projected to be flat.
Overall, HD ranks 11th on our list of best and worst Dow stocks. While we acknowledge the potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.