Here’s What You Should Look Up To in Home Depot (HD)

Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund has focused on economic and COVID-related commentary. The fund also covered the notable detractors and contributors to its fourth-quarter investment performance and offered a discussion of an aspect of its investment strategy. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Ensemble Capital Management, in its Q4 2021 investor letter, mentioned The Home Depot, Inc. (NYSE: HD) and discussed its stance on the firm. The Home Depot, Inc. is an Atlanta, Georgia-based home improvement company with a $364.5 billion market capitalization. HD delivered a -15.88% return since the beginning of the year, while its 12-month returns are up by 22.92%. The stock closed at $349.10 per share on January 21, 2022.

Here is what Ensemble Capital Management has to say about The Home Depot, Inc. in its Q4 2021 investor letter:

“On the more positive side, we saw notable performance contribution from Home Depot. In the midst of a housing shortage and rising home prices, Americans turned to home improvement projects with Home Depot’s startlingly fast growth in 2020 continuing throughout 2021. With each quarter that passed showing a continuation of strong growth rather than the slowdown that many investors expected, the stock led the S&P 500 for most of the year and turned in a heady 27% rally in the fourth quarter to close out the year. Notably, while Do It Yourself homeowners did indeed shop at Home Depot less than they did during record setting 2020, almost half of the company’s revenue comes from Pro contractors where strong growth continues.”

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Our calculations show that The Home Depot, Inc. (NYSE: HD) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HD was in 58 hedge fund portfolios at the end of the third quarter of 2021, compared to 64 funds in the previous quarter. The Home Depot, Inc. (NYSE:HD) delivered a -4.61% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on HD in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.