5 Best Retail Stocks to Buy Now

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

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) is an Atlanta, Georgia-based retail giant that sells appliances, construction materials, tools, and services related to home improvement.

In a research note issued on October 31, Steven Zaccone at Citi assigned The Home Depot, Inc. (NYSE:HD) stock a Buy rating with a target price of $340. The analyst thinks that despite the macroeconomic uncertainty, the fundamentals of hardline retail are still positive in the short term. Zaccone believes that retailers like The Home Depot, Inc. (NYSE:HD) have pricing power and operate in the need-based categories. Hence, the company is in control of its margins, given its strong positioning. Experts anticipate The Home Depot, Inc. (NYSE:HD) to grow its market share and enhance sales productivity, making it one of the best retail stocks to buy now.

Diamond Hill Capital shared its bullish stance on The Home Depot, Inc. (NYSE:HD) in its Q2 2022 investor letter. Here’s what the firm said:

“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.”

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