5 Best Housing Stocks To Buy Now

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

Number of Hedge Fund Holders: 80

Headquartered in Atlanta, Georgia, The Home Depot, Inc. (NYSE:HD) is the world’s most prominent home renovation retailer, operating 2300 retail outlets across the U.S, Canada, and Mexico. Its offerings include an array of building materials, hardware supplies, electrical products, various interior and exterior decoration products, indoor and outdoor gardening items alongside supplementary services such as installation services and home delivery.

The Home Depot, Inc. (NYSE:HD) stock is down 32.5% YTD as of October 24, 2022,  amidst a broader market sell-off. However, the company’s financial results have been resilient despite the deteriorating housing affordability, and recently the management of the company reaffirmed its full-year revenue guidance. The company is currently trading at 16.29x as of October 24, 2022, which is well below its historical average, and presents a good buying opportunity for long-term investors. Moreover, The Home Depot, Inc. (NYSE:HD) offers a dividend yield of 2.76% at the current price level.

Jonathan Matuszewski, an analyst at Jefferies, currently has a Buy rating on The Home Depot, Inc. (NYSE:HD). On October 3, 2022, the analyst increased his price target on the company to $394.

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.

According to Insider Monkey database, 80 hedge funds held a stake in The Home Depot, Inc. (NYSE:HD) at the end of the second quarter ending June 2022. Fisher Asset Management was the leading stakeholder of the company, with an investment value of over $2 billion in the company.

You can also take a look 11 Best Micro-Cap Stocks To Invest In and Top 5 QQQ Stocks By Index Weight.

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