Familiarity can serve as a great starting point when searching for stocks. Products we use on a daily basis — like now during the dog days of summer — can provide inspiration for identifying possible investment opportunities. In fact, investing greats Peter Lynch and Warren Buffett have made tons of money in the market by buying what they know.
Let’s look at three summertime stocks that are worth a closer look.
Lowe’s Companies, Inc. (NYSE:LOW)
We all want to spruce up our lawns, get that new barbecue grill, and have the pool looking good. For any home and garden need you might have this summer, Lowe’s Companies, Inc. (NYSE:LOW) is there to help. Without a doubt, Lowe’s is enjoying a housing recovery tailwind. But Lowe’s pending acquisition of Orchard Supply Hardware Stores Corp (NASDAQ:OSH) may unlock even more value for shareholders. Lowe’s anticipates operating the West Coast chain as a standalone business and might offer Sears brands, such as Craftsman and Kenmore, at Orchard Supply stores (as OSH stores currently do).
Energizer Holdings, Inc. (NYSE:ENR)
Yes, you probably think of the bunny and batteries. But that’s not all Energizer does. In fact, it’s also the company behind Hawaiian Tropic and Banana Boat sunscreens and Schick razors, products we tend to use more frequently in the summer. Energizer Holdings, Inc. (NYSE:ENR) has recently been on a stock buyback spree, an action often taken if a company thinks its stock is undervalued. It currently trades at a forward price-to-earnings ratio of 13.
The Walt Disney Company (NYSE:DIS)
I’d like a show of hands. Does anyone with small children have plans to visit a Disney park, see a Disney movie, or occupy their bundles of joy with a Disney show on a summertime road trip? If you’re childless or have grown kids, will you spend any time cooling off on the couch this summer watching an ESPN-televised sporting event? That’s what I’m talking about. The ubiquitous Disney empire is everywhere, especially in the summer.