Springtime is here, and as the weather continues to get warmer, your grass gets greener. These ideas may give a little "spring" to your investments and make you see that "the grass is greener" on your side.
Spring time is when home remodeling gets done, and tons of planting, gardening, and other home improvements take place.
Companies like Home Depot HD and Lowe's LOW should benefit, as people will take care of their lawns, by gardening, planting new flowers, and even landscaping. Home Depot and Lowe's are the two biggest home improvement stores in the country, but have been downtrodden because of the weak home building sector we've seen over the past few years.
Shares of Home Depot trade at less than 14 times 2011 earnings, and sports a dividend yield of 1.7%. Lowe's trades at 13.2 times 2011 earnings, and has a dividend yield of 1.6%.
Two more companies that are likely to benefit from the increase in lawn care are Scotts Miracle-Gro SMG and Titan Machnery TIITN.
Scotts Miracle-Gro makes and sells lawn and garden care products around the world. It's most famous for its soil seed, which helps your grass be as green as possible.
Titan Machinery is an agricultural retail store, similar to Tractor Supply TSCO. It mostly carries Case New Holland CNH products.
Scotts trades at 13.9 times 2011 earnings, and has a 1.8% dividend yield, while Titan Machinery trades at 19.6 times 2011 earnings. In addition to the increased benefit these companies will get from traditional lawn care, these two names are highly levered to the agricultural trade as well.
As the weather continues to get nicer, add some green to your portfolio, and your front lawn with these springtime stocks.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Posted In: Long IdeasTrading IdeasConstruction & Farm Machinery & Heavy TrucksConsumer DiscretionaryFertilizers & Agricultural ChemicalsHome Improvement RetailIndustrialsMaterialsSpecialty Stores
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