In this article, we will be looking at the 5 best ecommerce stocks to invest in. To see our detailed analysis of ecommerce stocks, you can go directly to see the 12 Best Ecommerce Stocks to Invest In.
5. The Home Depot, Inc. (NYSE: HD)
Number of Hedge Fund Holders: 68
The Home Depot, Inc. (NYSE: HD) is a home improvement retailer that operates the Home Depot stores selling a range of building materials, home improvement products, and other related items. The company has one of the largest e-commerce businesses in the US and ranks 5th on our list of the best ecommerce stocks to invest in.
This month, The Home Depot, Inc. (NYSE: HD) added a new online rental facility in about 1,300 rental locations, with the new technology allowing customers to reserve rental equipment 30 days in advance online, to be picked up when needed from the store. In a channel check by Wells Fargo this June, The Home Depot, Inc. (NYSE: HD) received positive responses, and an Overweight rating was maintained. J.P. Morgan has also mentioned that The Home Depot, Inc. (NYSE: HD) is among its top consumer stock picks. In the fiscal first quarter of 2022, The Home Depot, Inc. (NYSE: HD) had an EPS of $3.86, beating estimates by $0.81. The company’s revenue was $37.5 billion, up 32.7% year over year and beating estimates by $2.87 billion. The company has a gross profit margin of 33.94% and the stock has gained 19.81% in the past 6 months and 20.58% year to date.
By the end of the first quarter of 2021, 68 hedge funds held stakes in The Home Depot, Inc. (NYSE: HD) worth roughly $4.35 billion. This is compared to 79 hedge fund holders in the previous quarter with a total stake value of approximately $4.92 billion.
Ensemble Capital, an investment management firm, mentioned The Home Depot, Inc. (NYSE: HD) in its first-quarter 2021 investor letter. Here’s what they said:
“Notable contributors to the Fund’s returns this quarter (included) Home Depot. Home Depot (8.9% weight in the Fund) continued to benefit from a red-hot housing and home improvement market, delivering record financial performance in 2020. As a high return on invested capital business, any step-up in growth results in considerable shareholder value creation. While 2021 comparable sales may not yield impressive headline results, we believe there are several secular tailwinds supporting continued housing investment, including millennials entering prime household formation/peak earnings years, relatively low interest rates, and government policies.
Home Depot (8.9% weight in the Fund): The big orange sign of Home Depot is a familiar sight for homeowners across the country. Despite the rise of Amazon, Home Depot has generated outstanding results for shareholders during the rise of eCommerce, even as Home Depot’s end market in housing suffered the worst collapse in a century. Over the last fifteen years, a period which began at the peak of the housing bubble, Home Depot’s stock has generated annual returns of 17% a year, outperforming the S&P 500 by approximately 7% a year.” (Click here to see the full text)
