Is The Home Depot (HD) an Inflation Proof Stock?

Diamond Hill Capital, an investment management company, released its “Large Cap Concentrated Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.08% net of fees compared to a -4.61% return for the Russell 1000 Index. Holdings in the energy and technology sectors contributed to the fund’s performance, while investments in the healthcare and financial sectors underperformed in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill highlighted stocks like The Home Depot, Inc. (NYSE:HD) in the third quarter 2022 investor letter. Based in Atlanta, Georgia. The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. On November 15, 2022, The Home Depot, Inc. (NYSE:HD) stock closed at $311.93 per share. One-month return of The Home Depot, Inc. (NYSE:HD) was 9.43%, and its shares lost 20.49% of their value over the last 52 weeks. The Home Depot, Inc. (NYSE:HD) has a market capitalization of $319.332 trillion.

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

“The Home Depot, Inc. (NYSE:HD) shares were more resilient in Q3 as the company continues to perform well and reiterated guidance despite increasing market concerns regarding general inflationary pressures and the impact rising mortgage rates may have on the housing market. We view the long-term prospects and multi-year fundamental outlook as unchanged. Home improvement through repair and remodel is likely to be one of more resilient housing-related industries given the relative attractiveness for consumers to renovate existing homes rather than reset their current low fixed mortgage rate to higher rates that we’re seeing today.”

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The Home Depot, Inc. (NYSE:HD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios successfully The Home Depot, Inc. (NYSE:HD) at the end of the second quarter, which was 75 in the previous quarter.

We discussed The Home Depot, Inc. (NYSE:HD) in another article and shared the stock picks from the Ken Fisher portfolio. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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

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