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

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.

Recommendation

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

Place your stop at $66.00.

Options

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

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Markets continued to rally last week, with the Dow Jones up 1.88%, the S&P 500 rising 1.90% and the NASDAQ gaining 1.40%. The MCSI Emerging Markets Index also rose 2.71%. Big gainers in your Alpha Investor Letter portfolio included the WisdomTree Japan Hedged Equity ETF (DXJ), which gained a robust 5.72%; the iSh

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE