This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Defensive Stocks to Protect Your Portfolio Gains - views

Home Depot

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Home Depot ( HD) may seem like a surprising choice for a defensive portfolio. After all, it's got hefty exposure to housing, an industry that's been staging a shaky recovery in recent years. But looking at the numbers, Home Depot has actually been a defensive name in the last half-decade.

>>5 Dividend Stocks Getting Ready to Hike Payouts

A big part of Home Depot's resilience comes from the fact that most of the bearish downside scenarios for home improvement retailers never panned out. Instead, when property values dropped around the country, homeowners turned to one of Home Depot's 2,250 stores to build equity through smaller scale projects. While Home Depot itself was overextended as a result of the real estate boom, the firm was quick to restructure itself in the wake of the housing market crash, and it avoided much of the market's downside as a result. Going forward, the firm should be able to avoid repeating history while growing its geographic footprint more cautiously.

Latin American growth looks attractive for Home Depot right now -- more so than the firm's failed foray into China. While the exit from China was a setback, the firm's tiny exposure to the People's Republic meant that the financial impact was minuscule. A 2% dividend payout and a historically-higher bull-market beta makes HD a solid defensive holding right now.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CLX $127.15 -0.59%
CVS $93.75 0.69%
HD $113.87 -0.40%
KMB $126.61 -2.60%
TRV $104.28 -1.40%


Chart of I:DJI
DOW 15,716.48 -198.26 -1.25%
S&P 500 1,818.71 -33.15 -1.79%
NASDAQ 4,234.9660 -48.6260 -1.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs