Lowe’s
This company has a low 6% of foreign sales and remains a top retail pick across Wall Street. Lowe’s Companies Inc (NYSE: LOW) is a leading home improvement retailer, with more than 2,000 stores in the United States and Canada. The company has tempered its new store opening plans and is focusing investments on technology and e-commerce capabilities, in addition to improving its retail store productivity.
Lowes offers products for maintenance, repair, remodeling and home decorating. It provides home improvement products under the categories of kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions; storage and cleaning; flooring; millwork; and outdoor power equipment. The company also offers installation services through independent contractors in various product categories.
Top analysts have felt for some time that the company’s tool rental business, which is a $1.5 billion revenue opportunity, is a strong catalyst for multiple expansion.
Shareholders now receive a 1.73% dividend, but the $0.80 per share dividend is expected to increase to $0.96. UBS recently lowered its $250 price objective to $240. The $251.92 consensus target for Lowe’s Companies stock is higher, but shares traded at $186.50 Monday morning.
Medtronic
This medical technology giant is a solid pick for investors looking for a safe position in the health care sector. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.
The company announced in 2020 that Blackstone’s life sciences division will invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes R&D programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.
Medtronic stock currently comes with a 2.46% dividend. The payout is expected to rise to $0.68 a share from $0.63. The $122 Bernstein target price is lower than the $123.68 consensus target. The stock traded at $103.55 on Monday.
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