5 Best Seasonal Stocks to Buy Now

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

Number of Hedge Fund Holders: 64

The Home Depot, Inc. (NYSE:HD) ranks third on our list of the best seasonal stocks to buy now. It is the largest home improvement retailer in the U.S., which supplies tools, construction products, and services to its consumers. The company sees a big jump in consumer spending in Spring and during the holiday season as well. That is why the net sales at The Home Depot, Inc. (NYSE:HD) grew by 25% in Q4 2020.

In Q2 2021, The Home Depot, Inc. (NYSE:HD) posted a GAAP EPS of $4.53, beating the estimates by $0.11. The company’s revenue stood at $41.1 billion, up 8.1% from the prior-year quarter. On August 19, The Home Depot, Inc. (NYSE:HD) announced a quarterly dividend of $1.65 per share. In August, Citigroup lifted its price target on The Home Depot, Inc. (NYSE:HD) to $375, while keeping a ‘Buy’ rating on the shares. The firm’s analyst, Steven Zaccone sees strong potential in the company’s home improvement retail due to the growing housing market. Since the beginning of the year, The Home Depot, Inc. (NYSE:HD) delivered a 27.1% return to shareholders, while the stock gained 18.5% in the past 6 months.

As of Q2 2021, 64 hedge funds tracked by Insider Monkey have positions in The Home Depot, Inc. (NYSE:HD), worth $4.1 billion. In the previous quarter, the number of hedge funds having positions in the company stood at 68, with a total value of $4.3 billion.

Distillate Capital released its Q2 2021 investor letter and mentioned The Home Depot, Inc. (NYSE:HD) in it. Here is what the firm has to say:

“The largest additions in the rebalance, (included) Home Depot, was around 50 and 40 basis points incrementally. Home Depot outperformed modestly but still lagged its rising normalized cash flow estimate and so was also added to.”