Yesterday I had the good fortune to join Barry Armstrong on his radio show Financial Exchange on WRKO AM 680 in Boston. Every so often we get to talk stocks for a few minutes, and yesterday I gave him and the listeners of Boston two stock ideas that I think are solid buys today. You can catch our segment by clicking here. And you can read more about them below.
The Home Depot, Inc. (NYSE:HD)
This is one of the most obvious plays on the recovering (yes, I know it’s slow) housing market. One of the first questions I get when talking up The Home Depot, Inc. (NYSE:HD)’s game is “Why not Lowe’s ?” A fair question, no doubt, but when I look at the two side to side, the answer to me is obvious. The Home Depot, Inc. (NYSE:HD)’s scale simply makes it more profitable:
|Metric||Home Depot||Lowe’s Companies, Inc. (NYSE:LOW)|
Data from Freddie Mac’s most recent quarter tells us that as rates start ticking back up, the refinance boom is slowing down. And after all of this refinancing, I think many folks are going to be staying in their homes for a while. This means projects and renovations abound, and The Home Depot, Inc. (NYSE:HD) is one of the best ways for Foolish investors to play this trend.
McCormick & Company, Incorporated (NYSE:MKC)
I still gush about my trip to the McCormick & Company, Incorporated (NYSE:MKC) spice factory in Hunt Valley, Md. As someone who cooks a decent bit, it was just really cool to see how the operation works. It’s more than just “spices”; it’s science. They have labs where they perform research and try new things; it was just really cool. But I’m not picking this stock with my heart. Nope, I also love the fact that McCormick has a spot in virtually every pantry in the country. Open yours up, I bet you have a McCormick & Company, Incorporated (NYSE:MKC) product in there. And it’s this ubiquitous presence that has helped McCormick grow sales at a 7% annualized clip over the past five years.