5 Stocks That Can Begin to Rebound in 2023

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

Number of Hedge Fund Holders: 80

YTD Share Price Decline as of August 29: 27.78%

The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. On August 18, The Home Depot, Inc. (NYSE:HD) declared a $1.90 per share quarterly dividend, in line with previous. The dividend is payable on September 15, to shareholders of record on September 1. The stock delivers a dividend yield of 2.55% as of August 29. The board of directors also authorized a new $15 billion share repurchase program, to replace its last authorization. As consumer spending improves and people budget for home renovation, The Home Depot, Inc. (NYSE:HD) stock stands to rebound as soon as 2023. 

Truist analyst Scot Ciccarelli raised the price target on The Home Depot, Inc. (NYSE:HD) to $399 from $375 on August 17 and reaffirmed a ‘Buy’ rating on the shares. The company’s Q2 results were “solid” and its business trends remain robust despite the macro backdrop, the analyst told investors. He added that considering the significant supply/demand disruption in the housing market, the notable increase in home values, and the fixed nature of most mortgage debt, he still remains bullish on the Home Improvement space.

According to Insider Monkey’s data, The Home Depot, Inc. (NYSE:HD) was part of 80 hedge funds’ portfolios at the end of Q2, up from 75 funds in the previous quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 8.35 million shares worth $2.3 billion. 

Here is what the Carillon Clarivest Capital Appreciation Fund had to say about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Home Depot (NYSE:HD), the home improvement retailer, reported quarterly results that beat consensus on the top line, but noted uncertainty from ongoing inflation and supply chain constraints, dampening the outlook.”