5 Most Undervalued Dow Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) ranks second in our list of the most undervalued Dow stocks to buy according to hedge funds. The Home Depot, Inc. (NYSE:HD) shares gained on January 18 after a December 2022 NAHB Housing Market Index showed a jump. The Home Depot, Inc. (NYSE:HD) shares are poised to gain even when the housing market is slow. When people aren’t buying new homes, they spend renovating their existing homes. This home improvement trend brings more sales for home improvement companies like The Home Depot, Inc. (NYSE:HD).

Matrix Asset Advisors made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”