5 Blue Chip Stocks To Buy According To Billionaire Richard Chilton

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

Chilton Investment Company’s Stake Value: $220 million

Percentage of Chilton Investment Company’s 13F Portfolio: 5.28%

Number of Hedge Fund Holders: 75

The Home Depot, Inc. (NYSE:HD) is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services. At the end of Q1 2022, Richard Chilton’s hedge fund owned 735,171 shares of The Home Depot, Inc. (NYSE:HD), valued at over $220 million, making up 5.28% of Richard Chilton’s portfolio.

On May 20, Citi analyst Steven Zaccone raised his price target on The Home Depot, Inc. (NYSE:HD) to $348 from $327 and kept a Buy rating on the shares. The analyst increased fiscal 2022 earnings estimates following the company’s earnings report.

The Home Depot, Inc. (NYSE:HD) maintains a 14-year track record of consistent dividend growth, and on May 19, the retail corporation announced announced a quarterly payout of $1.90 per share, with a dividend yield of 2.81%, as of the close of June 17.

In the first quarter of 2022, the company experienced a positive hedge fund sentiment, with 75 elite funds tracked by Insider Monkey owning stakes in the company, up from 68 in the previous quarter. The aggregate value of these stakes is roughly $5.6 billion.  Ken Fisher’s Fisher Asset Management was the company’s largest shareholder in Q1 2022, with shares worth over $2.4 billion.

Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:

“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”