After selling my Dogs, I poured over a list of stocks that I had in my notebook. I compared many of the stocks listed there along with stocks I already owned. Considered buying more Target (TGT), more Dick’s Sporting Goods (DKS), more eBay (EBAY). I finally settled on buying $750 of Lowes (LOW), and $750 of Advance Auto Parts (AAP). I placed the order, but changed my mind before it took place. I cancelled these two orders, and then placed orders for $500 of Lowes (LOW), $500 of Advance Auto Parts (AAP), and $500 of Cabela’s (CAB).
Advance Auto Parts has analyst estimates of 17.5% growth per year over the next five years. The P/E is 22.19 with a forward P/E of 15.24. The debt is reasonable, and has done well versus the S&P 500. The Return On Equity (ROE) is over 26%. And as I mentioned in a previous log, I liked the store and the service when I visited, and purchased a set of windshield wipers.
The analyst growth estimate for Lowes is 18% per year for the next five years. And the P/E is only 19.92 with a forward P/E of 14.84. The debt is very good. This stock has outperformed the S&P 500. The ROE is a respectable 20.49%. There are three big hardware stores in this area. There is Home Depot, Lowes, and another chain store that is not publically owned. Whether I go to Lowes, or Home Depot pretty much depnds on which one is closer. I like both. But Lowes has better growth numbers at this point than Home Depot.
Cabela’s is kind of speculative. I have bought fishing gear from them in the past via their catalog, and have been very pleased. Even though thet are an older company, they only went public less than a year ago at an initial price of $27 a share, but is now selling for less than $19 a share. They are in the process of expanding, building retail centers ala Bass Pro Shops. I visited on the of the Bass Pro Shops stores down in Dallas and was very impressed. The place was very busy, and if I still spent much time fishing, I would spend a lot of time there. I was still tempted to buy fishing gear, even though I have fished much in several years. But Bass Pro Shops is not a publically owned company. So when Cabela’s get’s it’s retail centers, I believe they will be successfull. They will be building them over the next couple years.