Home Depot Is A Great Portfolio Diversifier, Despite Low Alpha

Summary:

  • Home Depot reported a decrease in sales and net earnings for fiscal 2023.
  • Home Depot remains committed to investing in its stores and capturing more market share despite current challenges.
  • The company has significant risks, including a weak balance sheet and a relatively poor valuation.
  • Despite the risks, I think Home Depot is a great portfolio diversifier, and my rating for HD stock is a Buy.

Home Depot Raises Its Minimum Wage For Workers

Justin Sullivan

Home Depot (NYSE:HD) is a portfolio staple, and while it should not be considered to be a large contributor to alpha, it remains a key tool to diversify and mitigate risk. I am confident it is one of the


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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