Hurricanes and Home Depot

09/20/2017 2:52 am EST

Focus: CONSUMER

Nicholas Vardy

Editor, Bull Market Alert, The Alpha Investor Letter, and The Global Guru

With Hurricanes Harvey and Irma wreaking havoc across the Southern states, a whole slew of strategies that we monitor have been piling into Atlanta-based Home Depot (HD), observes Nicholas Vardy, editor of Alpha Algorithm.


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Home Depot stores sell various building materials, home improvement products and lawn and garden products. It also provides installation, home maintenance and professional service programs to do-it-yourself, do-it-for-me and professional customers.

Here's a look at ten top investment strategies that are betting on Home Depot.

Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which historically has driven a significant part of companies’ risk and return.


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Large-Cap Alpha Growth

The company has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation -- among more traditional factors -- and weights the constituents based on their respective growth scores.  

Shareholder Yield

The company (a) pays cash dividends, (b) engages in net share repurchases and (c) pays down debt on its balance sheets.

Fundamental Strength

It is a top U.S. stock based on fundamentals measured by book value, cash flow and sales dividends.

Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

Insider and Analyst Sentiment

It is one of 100 stocks chosen from the S&P 1,500 based on positive sentiment among those “insiders” closest to a company’s financials and business prospects, such as top management, directors, large institutional holders and the Wall Street research analysts who follow the company.

Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

Goldman Sachs’ Active Beta

The stock is selected according to four factors -- value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

Value Tilt

Selected using a multi-factor modeling approach, the company is a value stock designed to enhance portfolio risk/return characteristics.

Capital Strength

The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).

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