Top 5 Blue Chip Stocks with Growing Dividends

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

Number of Hedge Fund Holders: 100

On June 23, Wolfe Research downgraded The Home Depot, Inc. (NYSE:HD) to Peer Perform from Outperform. It did not assign a price target. In a research note, the firm said the stock “remains in limbo” as investors weigh the impact of the housing market lock-in effect and the company’s strategic shift toward the large professional contractor segment. According to Wolfe, both factors are creating uncertainty around Home Depot’s long-term earnings potential.

The firm noted that a more constructive outlook is beginning to emerge around the mid-term elections, with greater attention being paid to housing affordability. Still, the analyst believes any meaningful legislative action capable of unlocking the housing market would likely not occur before mid-2027.

Wolfe also raised questions about where interest rates may ultimately settle and how much Home Depot may have benefited from years of lower rates that supported earnings growth. The firm added that it continues to prefer shares of Lowe’s (LOW).

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. The company sells a wide range of home improvement products, building materials, lawn and garden items, décor products, and maintenance, repair, and operations (MRO) supplies through its stores and online platforms.