A Second Bet on the Home Improvement Sector

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

This week’s Alpha Algorithm recommendation is the primary competitor to another current pick in our portfolio, Home Depot (HD).

Founded in 1946 and based in Mooresville, North Carolina, Lowe’s Companies, Inc. (LOW) is a home improvement retailer, offering products for maintenance, repair, remodeling and home decorating. It operates 1,857 home improvement and hardware stores in the United States, Canada and Mexico.


Lowe’s (LOW) vs. S&P 500 over five years

Five Top Investment Strategies Betting on LOW

  • Share Buybacks

U.S. stocks that have reduced their shares outstanding by at least 5% in the previous year through share repurchases.

  • Dividend Aristocrats

Companies that have increased dividends for at least 25 consecutive years.

  • Float Shrink

Companies that shrink their float while growing free cash flow and not increasing their leverage.

  • Shareholder Yield

Companies (a) paying cash dividends, (b) engaging in net share repurchases and (c) paying down debt on their balance sheets.

  • Large Cap Growth

Top 50 large-cap U.S. growth stocks yielded through a rigorous 10 factor fundamental screening process.


Buy Lowe’s Companies, Inc. (LOW) at market today.

Place your stop at $66.00.


Buy the LOW July $75 calls (LOW160715C00075000) that last traded at $3.55 and expire on July 15.

Portfolio Update

As I have indicated, I tend to recommend options only when the stock has pulled back in the midst of an uptrend.

With Apple (AAPL) pulling back 4.38% over the past week, and now technically oversold, I am now recommending that you buy the AAPL July $105 Apple options (AAPL160715C00105000that last traded at $5.80 and expire on July 15.

Exclusive  A Wild Start to the New Investing Year

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