Ken Fisher Stock Portfolio: Top 5 Stock Picks

In this article, we discuss the top 5 stock picks from the Ken Fisher portfolio. If you want to see more stocks in this selection, check out Ken Fisher Stock Portfolio: Top 10 Stock Picks. 

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

Number of Hedge Fund Holders: 80

Fisher Asset Management’s Stake Value: $2,253,772,000

The Home Depot, Inc. (NYSE:HD), an American home improvement retailer, is one of the top stock picks from the Ken Fisher portfolio. In Q3 2022, Fisher owned more than 8 million shares of The Home Depot, Inc. (NYSE:HD), worth $2.25 billion and representing 1.68% of the total 13F securities. 

On November 15, The Home Depot, Inc. (NYSE:HD) reported a Q3 GAAP EPS of $4.24 and a revenue of $38.87 billion, topping analysts’ estimates by $0.13 and $910 million, respectively. For FY 2022, The Home Depot, Inc. (NYSE:HD) reported total sales growth and comparable sales growth of approximately 3% and an operating margin of 15.4%. 

JPMorgan analyst Christopher Horvers on November 15 maintained an Overweight rating on The Home Depot, Inc. (NYSE:HD) but lowered the price target on the shares to $300 from $347. In 2023, the analyst believes housing names “should see a greater degree of lagged negative revisions.”

According to Insider Monkey’s data, 80 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) at the end of the second quarter of 2022, compared to 75 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held a notable position in the company, comprising 1.76 million shares worth $484.5 million. 

Here is what Diamond Hill Capital specifically said about The Home Depot, Inc. (NYSE:HD) in its Q2 2022 investor letter:

“The Home Depot, Inc. (NYSE:HD) is a high-quality operator in the home improvement industry. Macroeconomic concerns, particularly the rise in mortgage rates, caused the share price to pull back and trade at a greater discount to our estimate of intrinsic value. We believe Home Depot is well positioned to continue gaining share due to its premium real estate locations, strong operations and recent investments in its supply chain. We like Home Depot’s exposure to the professional customer and believe in its ability to take market share in this segment as we believe home improvement spending has the potential to remain resilient in upcoming years.”