7 Best Consumer Cyclical Stocks To Buy According to Hedge Funds

5. The Home Depot, Inc. (NYSE:HD)  

Number of Hedge Fund Investors: 86

The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in the U.S. The company provides a wide range of products, from construction materials and tools to home appliances and garden equipment. The company has over 2,300 stores across North America that serve both professional contractors and DIY customers.

The Home Depot, Inc.’s (NYSE:HD) growth potential is driven by its focus on expanding the Pro market, which is estimated to be a $1 trillion addressable market. The company’s Pro Market refers to the segment of its business that focuses on professional contractors and builders. Home Depot (NYSE:HD) is accelerating its investments in this area. In June, The Home Depot, Inc. (NYSE:HD) also acquired SRS Distribution (SRS) for $18.25 billion, which is expected to boost the company’s market share in the Pro market and drive long-term growth.

The Home Depot, Inc.’s (NYSE:HD) sales have been impacted by the recent slowdown in the housing market, which has resulted in a decline in demand for home improvement and refurbishing projects. However, with the Federal Reserve’s recent decision to lower interest rates, the company is poised to benefit from a potential rebound in the housing market. The decline in interest rates is expected to boost housing sales, which will in turn drive demand for The Home Depot, Inc.’s (NYSE:HD) products and services. Additionally, the company’s strategic shift towards smaller repair and maintenance projects, as well as its growing focus on servicing professional customers, will help mitigate the impact of the housing market slowdown.