Is it a Good Choice to Invest in Home Depot (HD)?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Large Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, Diamond Hill Large Cap Fund held up better than the Russell 1000 Index by a decent margin in Q1. After a strong rebound in 2021, global GDP growth is expected to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Large Cap Fund mentioned The Home Depot, Inc. (NYSE:HD) and explained its insights for the company. Founded in 1978, The Home Depot, Inc. (NYSE:HD) is an Atlanta, Georgia-based home improvement company with a $295.1 billion market capitalization. The Home Depot, Inc. (NYSE:HD) delivered a -30.80% return since the beginning of the year, while its 12-month returns are down by -11.01%. The stock closed at $287.18 per share on July 13, 2022. 

Here is what Diamond Hill Large Cap Fund has to say about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter:

“Home Depot shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”

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Our calculations show that The Home Depot, Inc. (NYSE:HD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Home Depot, Inc. (NYSE:HD) was in 75 hedge fund portfolios at the end of the first quarter of 2022, compared to 68 funds in the previous quarter. The Home Depot, Inc. (NYSE:HD) delivered a -5.69% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on The Home Depot, Inc. (NYSE:HD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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