7 Growth Stocks That Are Trading at a Bargain Price

April 4, 2023

in Stocks

Reading Time: 8 mins read

Lowe’s Companies (LOW)

A businessman's hand arranging wooden cube blocks to represent growth stocks

Source: 3rdtimeluckystudio / Shutterstock

After the collapse of the housing market, Lowe’s Companies (NYSE:LOW) is looking like a bargain growth stock. However, I understand if some investors are wondering when that growth will emerge. Revenue and earnings for the home improvement giant are likely to remain under pressure in 2023 as the housing market will remain sluggish.

That being said, when the housing market does pick up, you’re not going to be able to buy the LOW stock at under $200 a share. If you want to wait to see if the stock will drop to an even more attractive price point, I wouldn’t blame you. But timing the market is always tricky. So it’s a good idea to take a small position now and average cost down if the price does drop.

By taking that strategy, you can take advantage of the company’s dividend. Lowe’s is a Dividend King which means the company has increased its dividend for at least 50 consecutive years. While the yield of 2.18% isn’t particularly impressive, investors do get a $4.20 per share annual payout which makes the stock a safe place to ride out the current market.