Connect with us

Spread & Containment

The Best RV Destinations in the U.S.

It’s time to plan your road trip. These 30 RV getaway spots are ranked based on cost, amenities, internet speed, pet polices, air quality, and more.

Published

on

It's time to plan your road trip. These 30 RV getaway spots are ranked based on cost, amenities, internet speed, pet polices, air quality, and more.

If it seemed like the pandemic produced a lot more RVs around your neighborhood, you’re probably right. One of them may even be yours.

'Van life' was already trending before Covid and has been buoyed by the need for social distancing and the work-from-anywhere possibilities. As travel-hungry adventurers continue to look for ways to escape and see the great outdoors, RV sales are on the rise.

The RV Industry Association forecasts RV wholesale shipments at around 591,100 units by the end of 2022, pretty close to the 600,240 shipped in 2021, which was the industry’s best year on comparable record. Total RV shipments in March 2022 were 64,454, up 18.7% over March 2021, and a 69% increase over the 38,015 shipped in March 2019.

Although there’s not really any data on how many people are out there scrunched up in their vans living the #vanlife, Mercedes-Benz U.S. van sales shot up 22.5% in 2020, according to USA today.

So, yes, if it seems like you're always driving behind an RV on the highway, it's more likely: 11.2 million U.S. households own an RV, according to the RV Industry Association. And contrary to popular belief, they're not just retirees: more than half are under 54 years old. Those in the 18- to 34-year-old age range now make up 22% of the market.

So if you’re going to jump on the camper bandwagon to head out on the open road, where are the best places to live the RV life? To determine the best RV destinations in the U.S., number crunchers at StorageCafe, an online platform that provides storage unit listings, analyzed data from camping directory CampgroundViews about numbers of campsites, their costs and amenities such as water, sewer and electricity hookups, swimming pools, WiFi, cable TV, ‘pull-thru’-type sites (for convenience when parking) and pet policies. They also used a variety of sources to find local air quality, internet speeds, grocery prices, storage options and the number of nearby retail outlets.

Here are the 30 best places in the U.S. for RV campers.

1. Branson, Mo.

  • Median air quality index: 40= good
  • Average internet speed: 356 mbps
  • Grocery cost: 96% of U.S. average
  • Retail outlets per 1,000 people: 11.3

The Ozarks mountain resort Branson tops the list with 25 RV campsites around the area, 80% have pull-through parking, 68% have swimming pools, and 84% have cable TV and wi-fi. There’s even an RV park in town, right on the shore of Lake Taneycomo. Branson offers loads of entertainment—theaters, concert venues and museums, plus Dolly Parton's Stampede.

2. Hot Springs, Ark.

  • Median air quality index: 34=good
  • Average internet speed: 97 mbps
  • Grocery cost: 95.7% of U.S. average
  • Retail outlets per 1,000 residents: 4.8

About a 4-hour drive south of Branson, head to Hot Springs, Ark., to enjoy a spa day and the hot springs for which the town is named. There's also theme parks, film and music festivals and a zoo.

3. Pigeon Forge, Tenn.

  • Median air quality index: 43=good
  • Average internet speed: 92 mbps
  • Grocery cost: 98.2% of U.S. average
  • Retail outlets per 1,000 residents: 22.9 (the most on this list)

Pigeon Forge is a popular tourist destination near the Great Smoky Mountains National Park. There's plenty of shopping here and another Dolly Parton theme park. Of 16 campsites here, 80% feature swimming pools.

4. Zephyrhills, Fla.

  • Median air quality index: 38=good
  • Average internet speed: 330 mbps
  • Grocery cost: 102.1% of U.S. average
  • Retail outlets per 1,000 residents: 2.8

Zephyrhills is a suburb of Tampa, with beaches just an hour away. There are swimming pools in 80% of the campsites.

5. Grants Pass, Ore.

  • Median air quality index: 23=good
  • Average internet speed: 113 mbps
  • Grocery cost: 100.3% of U.S. average
  • Retail outlets per 1,000 residents: 4

Over in the West, Grants Pass sits on Oregon's Rogue River in the Rogue River–Siskiyou National Forest. It's a good spot for rafting and enjoying the lush outdoors. It's central to places like Crater Lake National Park and the Oregon Shakespeare Festival in Ashland.

6. Rockport, Texas

  • Median air quality index: 44=good
  • Average internet speed: 99 mbps
  • Grocery cost: 98.4% of U.S. average
  • Retail outlets per 1,000 residents: 2.7

Known as the Texas Riviera, Rockport has marinas for boating and fishing enthusiasts, as well as birdwatching opportunities. It's about three hours from Houston, which is also on this list.

7. Gulf Shores, Ala.

  • Median air quality index: 37=good
  • Average internet speed: 222 mbps
  • Grocery cost: 100.0% of U.S. average
  • Retail outlets per 1,000 residents: 6.1

Gulf Shores is known for its warm water and white sand beaches. It's a good spot for dolphin watching, ocean fishing and golf. Of the 12 campsites here, more than 80% provide wi-fi and cable TV, and there are also good retail options. 

8. South Fork, Colo.

  • Median air quality index: 17=good
  • Average internet speed: 28 mbps
  • Grocery cost: 101.9% of U.S. average
  • Retail outlets per 1,000 residents: 13.7

A small town a mile high at the confluence of the South Fork and Rio Grande rivers, this is the place for fresh air, breathtaking scenery, abundant wildlife and outdoor adventure.

9. Houston

  • Median air quality index: 52=moderate
  • Average internet speed: 459 mbps
  • Grocery cost: 98.1% of U.S. average
  • Retail outlets per 1,000 residents: 3

Don't pass up the big city on your road trip; the Houston area has 15 campsites providing great internet connectivity.

10. Fort Myers, Fla.

  • Median air quality index: 40=good
  • Average internet speed: 355 mbps
  • Grocery cost: 103.2% of U.S. average
  • Retail outlets per 1,000 residents: 5.9

On Florida's Gulf coast, Fort Myers has beautiful shell-covered beaches, rich history,  fine restaurants and all the amenities of a top tourist city. There are 15 campsites in the area, and just south is Naples, Fla., also on this list, and from there you can head to Everglades National Park. 

11. Tucson, Ariz.

  • Median air quality index: 56=moderate
  • Average internet speed: 482 mbps
  • Grocery cost: 95.5% of U.S. average
  • Retail outlets per 1,000 residents: 3.1

Arizona resorts offer the most campsites. Tucson sits in the Sonoran Desert, near Saguaro National Park, and offers 30 campsites and an average internet speeds of 482 mbps — the second highest among the top 20 destinations — plus the ambience of a larger city.

12. Yuma, Ariz.

  • Median air quality index: 46=good
  • Average internet speed: 298 mbps
  • Grocery cost: 94.6% of U.S. average
  • Retail outlets per 1,000 residents: 2.8

In the far west of the state, on the Colorado River near the California and Mexico borders, Yuma has one of the nation's largest mass of inland sand dunes enjoyed by ATV-ers. Just over the border in Mexico is Los Algodones, a popular spot for medical tourism. Check out the Yuma Territorial Prison State Historic Park, a Wild West–era prison. (Yuma High's unusual mascot is the Criminals.)

13. Tyler, Texas

  • Median air quality index: 36=good
  • Average internet speed: 331 mbps
  • Grocery cost: 92.9% of U.S. average
  • Retail outlets per 1,000 residents: 5.4

Tyler, in eastern Texas, is a jumping-off point for the beautiful Piney Woods region, plus, as the Rose Capital of America, it's a great spot for avid gardeners to get their flower fix.

14. San Antonio, Texas

  • Median air quality index: 48=good
  • Average internet speed: 382 mbps
  • Grocery cost: 91.4% of U.S. average
  • Retail outlets per 1,000 residents: 2.7

Remember the Alamo? This is where you go to see it, and two-thirds of the 12 campsites in the area have swimming pools.

15. Foley, Ala.

  • Median air quality index: 37=good
  • Average internet speed: 22 mbps
  • Grocery cost: 96.2% of U.S. average
  • Retail outlets per 1,000 residents: 7.1

Just inland from Gulf Shores, Ala., Foley offers great value and plenty of shopping nearby.

16. Mission, Texas

  • Median air quality index: 44=good
  • Average internet speed: 590 mbps
  • Grocery cost: 90.6% of U.S. average
  • Retail outlets per 1,000 residents: 2 (the fewest of this list)

Birders will enjoy this spot in the far south of Texas, it’s home to the Bentsen-Rio Grande Valley State Park, and the headquarters for the World Birding Center.

17. Redding, Calif.

  • Median air quality index: 46=good
  • Average internet speed: 97 mbps
  • Grocery cost: 99.9% of U.S. average
  • Retail outlets per 1,000 residents: 4

Enjoy the water sports in this northern California city, which sits on the Sacramento River and Shasta Lake and serves as a good place to pick up supplies before heading on your next adventure. Nearby are Mt. Shasta and Lassen Volcanic National Park.

18. Naples, Fla.

  • Median air quality index: 39=good
  • Average internet speed: 316 mbps
  • Grocery cost: 117.0% of U.S. average (the most expensive)
  • Retail outlets per 1,000 residents: 16.9

Live the high life in Naples, where the shopping is great and the beaches are beautiful and well-kept. 

19. Brownsville, Texas

  • Median air quality index: 47=good
  • Average internet speed: 369 mbps
  • Grocery cost: 89.8% of U.S. average (the cheapest)
  • Retail outlets per 1,000 residents: 2.7

Brownsville is on the western Gulf Coast in southernmost Texas on the Mexico border. It's about 40 miles from the pristine beaches of South Padre Island.

20. Austin, Texas

  • Median air quality index: 43=good
  • Average internet speed: 459 mbps
  • Grocery cost: 96.7% of U.S. average
  • Retail outlets per 1,000 residents: 3.3

Only about a third of the campsites in the Austin area have swimming pools, but you'll be too busy eating at great restaurants and listening to live music anyway.

21. Benson, Ariz.

  • Median air quality index: 47=good
  • Average internet speed: 41 mbps
  • Grocery cost: 94.4% of U.S. average
  • Retail outlets per 1,000 residents: 3.1

Benson is south of Tucson, and near a number of attractions, including a cave park and Tombstone, Ariz., pictured here.

22. Casa Grande, Ariz.

  • Median air quality index: 64=moderate
  • Average internet speed: 71 mbps
  • Grocery cost: 95.7% of U.S. average
  • Retail outlets per 1,000 residents: 2.5

Here’s another desert spot between Phoenix and Tucson, where you can see Indian ruins at Casa Grande Ruins National Monument, and also some strange abandoned buildings known as The Domes.

23. Deming, N.M.

  • Median air quality index: 22=good
  • Average internet speed: 26 mbps
  • Grocery cost: 90.5% of U.S. average
  • Retail outlets per 1,000 residents: 2.2

There are a number of interesting parks near Deming, including Gila Cliff Dwellings National Monument, where you can see the ancient cave homes pictured here.

24. Pahrump, Nev.

  • Median air quality index: 20=good
  • Average internet speed: 40 mbps
  • Grocery cost: 100.6% of U.S. average
  • Retail outlets per 1,000 residents: 2.8

Pahrump sits near the California border, near Las Vegas and Death Valley National Park.

25. Lake Havasu City, Ariz.

  • Median air quality index: 20=good
  • Average internet speed: 316 mbps
  • Grocery cost: 97.8% of U.S. average
  • Retail outlets per 1,000 residents: 4.3

Lake Havasu is farther south of Las Vegas on the Arizona/California border, and known as a base for trails in the nearby desert and water sports on the lake. 

26. Wisconsin Dells, Wis.

  • Median air quality index: 41=good
  • Average internet speed: 166 mbps
  • Grocery cost: 93.6% of U.S. average
  • Retail outlets per 1,000 residents: 6.9

This is a popular tourist spot with both outdoor nature attractions and theme parks.

27. Brookings, Ore.

  • Median air quality index: 23=good
  • Average internet speed: 195 mbps
  • Grocery cost: 102.3% of U.S. average
  • Retail outlets per 1,000 residents: 4.7

Camping is the way to go on this relatively remote section of the rugged Oregon coast. This is your jumping-off point for a coast-hugging highway trip complete with secret beaches, rock formations, tide-pooling opportunities and redwoods.

28. Franklin, N.C.

  • Median air quality index: 33=good
  • Average internet speed: 32 mbps
  • Grocery cost: 97.1% of U.S. average
  • Retail outlets per 1,000 residents: 4.7

Franklin is situated within the Nantahala National Forest near the Great Smoky Mountains National Park.

29. Mesa, Ariz.

  • Median air quality index: 97=moderate
  • Average internet speed: 481 mbps
  • Grocery cost: 97.2% of U.S. average
  • Retail outlets per 1,000 residents: 2.5

Mesa is just east of Phoenix.

30. Okeechobee, Fla.

  • Median air quality index: 38=good
  • Average internet speed: 319 mbps
  • Grocery cost: 102.0% of U.S. average
  • Retail outlets per 1,000 residents: 3.3

The inland Lake Okeechobee is a good place for birdwatchers to spot unusual species at certain times of the year.

Read more about some of these destinations and the methodology for this ranking at StorageCafe.com.

Read More

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Spread & Containment

FTSE 100 gains as commodity-linked stocks bounce back

The commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3% UK’s FTSE 100 gained on Monday, as an easing of COVID-19 restrictions…

Published

on

The commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3%

UK’s FTSE 100 gained on Monday, as an easing of COVID-19 restrictions in China brought relief to commodity prices, lifting shares of major oil and mining companies.

As of 0704 GMT, the commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3%.

The risk sentiment improved after a Wall Street rally late last week and a rebound in copper and iron ore prices on Monday, boosted by an easing COVID-19 restrictions in Shanghai and relaxed testing mandates in several Chinese cities.

The burst of global enthusiasm for equities has put a spring in the step of the FTSE 100 at the start of the week, Hargreaves Lansdown analyst Susannah Streeter said.

Mining stocks led gains on the FTSE 100 index, with Anglo American, Rio Tinto and Glencore rising more than 3%, after Group of Seven leaders pledged to raise $600 billion private and public funds in five years to finance needed infrastructure in developing countries.

It is hoped this scheme, seen as a counter to China’s Belt and Road Initiative, will set off a spurt of spending and demand for commodities around the world, Streeter added.

Among individual stocks, CareTech surged 20.8% after the UK-based provider of care and residential services agreed to be acquired by a consortium led by Sheikh Hoidings in an 870.3 million pounds ($1.07 billion) deal.

Carnival Corp jumped 5.6%, extending its Friday gains after the leisure travel company forecast a positive core profit for the current quarter despite surging costs.

London-listed shares of Rio Tinto added 2% after a U.S appeals court ruled that the federal government may give the UK copper miner a right to lands in Arizona.

BAE Systems inched up 0.4% after the defence company received a $12 billion contract from the U.S Department of Defence.

The post FTSE 100 gains as commodity-linked stocks bounce back first appeared on Trading and Investment News.

Read More

Continue Reading

Government

Structural racism drives higher COVID-19 death rates in Louisiana, study finds

COLLEGE PARK, MARYLAND–Disproportionately high COVID-19 mortality rates among Black populations in Louisiana parishes are the result of longstanding…

Published

on

COLLEGE PARK, MARYLAND–Disproportionately high COVID-19 mortality rates among Black populations in Louisiana parishes are the result of longstanding health vulnerabilities associated with institutional and societal discrimination, according to research conducted by an interdisciplinary team under the mentorship of University of Maryland (UMD) Clark Distinguished Chair Deb Niemeier and UMD Associate Professor of Kinesiology Jennifer D. Roberts in the School of Public Health. 

Credit: Guangxiao Hu, Nora Hamovit, Kristen Croft, Jennifer D. Roberts, and Deb Niemeier, University of Maryland.

COLLEGE PARK, MARYLAND–Disproportionately high COVID-19 mortality rates among Black populations in Louisiana parishes are the result of longstanding health vulnerabilities associated with institutional and societal discrimination, according to research conducted by an interdisciplinary team under the mentorship of University of Maryland (UMD) Clark Distinguished Chair Deb Niemeier and UMD Associate Professor of Kinesiology Jennifer D. Roberts in the School of Public Health. 

The team included doctoral students from three different programs at UMD, working together as part of an interdisciplinary fellowship program known as UMD Global STEWARDS, directed by Professor Amy R. Sapkota of the School of Public Health.

“Our results suggest that structural racism and inequities led to severe disparities in initial COVID-19 effects among highly populated Black Louisiana communities, and that as the virus moved into less densely populated Black communities, similar trends emerged,” the researchers concluded in a study published in the Proceedings of the National Academy of Sciences on Monday, June 27. 

Over the course of generations, discrimination in employment, education, housing, and access to medical care has led to higher risks of chronic illnesss (including asthma, diabetes, and obesity) among Black communities, as well as a higher likelihood of suffering a stroke, the authors noted. The Centers for Disease Control and Prevention (CDC) have linked these factors to the likelihood of becoming severely ill from COVID-19.

Both nationally and in Louisiana, Black communities encounter inadequate housing and lower rates of home ownership, reduced access to health care, and lower rates of employment. As exemplified by Cancer Alley, Black families are more likely to live in so-called “fence-line” neighborhoods, located near industrial facilities that expose them to pollutants, and typically encounter reduced air and water quality compared to white Americans. Black families are also more likely to be uninsured and face higher rates of unemployment. These and multiple other factors, all reflecting decades of institutional and societal bias, add up to a combination of stressors that undermine health and, in the case of COVID-19, have made Black communities particularly vulnerable.

To obtain their findings, the team members identified the spatial distribution of social and environmental stressors across Louisiana parishes, and used hotspot analyses to develop aggregate stressors. They then tracked the correlations among stressors, cumulative health risks, COVID-19 mortality rates, and the size of Black populations across Louisiana. The results suggest that COVID-19 mortality rates initially spiked in Black communities with high population densities and moderate levels of aggregate stress. Over time, the rates also increased in less densely populated Black communities with higher levels of aggregate stress.

“We find that Black communities in Louisiana parishes with both higher and lower population densities experience higher levels of stressors leading to greater COVID-19 mortality rates,” the researchers wrote. “Our work using the COVID-19 pandemic, particularly as observed in Louisiana, makes clear that communities with high levels of social, economic, and environmental racism are significantly more vulnerable to a public health crisis.”

The study lead authors include UMD graduate students Kristen Croft (Department of Civil and Environmental Engineering). Nora Hamovit (Department of Biology), and Guangxiao Hu (Department of Geographical Sciences), who worked together on the study as part of the UMD Global STEWARDS (STEM Training at the Nexus of Energy, WAter Reuse and FooD Systems) training fellowship program, which is funded by the National Science Foundation (NSF).

Allen P. Davis, Professor of Civil and Environmental Engineering, is a co-PI for the UMD STEWARDS program, which aims to bring together graduate students from a wide variety of backgrounds to work on collaborative projects. “Each student brings their own area of expertise to the table, resulting in synergy,” Davis said. “That kind of synergy is something you might not get in other disciplinary studies.”

The value of such an approach was evident in the collaboration among the three students.  “As a human geographer, my main focus was on the spatial disparities of structural racism and inequities and their effects on COVID-19 mortalities,” Hu said. “Using hotspot analysis, we identified two groups of parishes with high or low population densities located at different regions of Louisiana. Our research provides policy makers with very useful insights about the disproportionate burden of Black communities and the nonstationary distribution of this disproportion across Louisiana.”

Hamovit performed the initial data analysis that yielded stressor index calculations, which Hu then utilized for hotspot analysis. “Because my PhD research involves large and complex data sets I brought a strength of data organization and analysis to our team,” Hamovit said. Croft played a key role in defining the research topic and utilized her background in stormwater research to pinpoint specific variables that could have a bearing on health. 

Faculty mentors included Niemeier and Roberts. Niemeier, who joined the UMD civil and environmental engineering faculty in 2019 as the inaugural Clark Distinguished Chair, is an internationally-recognized expert on the equity impacts of infrastructure and engineering decisions. She is a member of the National Academy of Engineering and, in 2021, was elected to the American Philosophical Society. Her work, which details how marginalized communities are affected by vehicle emissions, development patterns, climate change, and approaches to disaster preparation and recovery, has helped spur policy and regulatory reforms.

Roberts is founder and director of the  Public Health Outcomes and Effects of the Built Environment Laboratory at UMD. She is also co-founder and co-director of NatureRx@UMD. Her scholarship focuses on the impact of built, social and natural environments, including the institutional and structural inequities of these environments, on physical activity and public health outcomes of marginalized communities. Roberts was recently named to the National Academy of Science’s Response and Resilient Recovery Strategic Science Initiative Strategy Group on COVID-19 and Ecosystem Service in the Built Environment.

###


Read More

Continue Reading

Spread & Containment

Consumer Spending Is Shifting: Should You Still Buy Lowe’s Stock?

Is this is good opportunity to buy the dip in Lowes stock that owns a duopoly in the home improvement industry?
The post Consumer Spending Is Shifting:…

Published

on

Lowe’s stock was one of the biggest winners during the pandemic. This is because the pandemic gave Americans two things: stimulus checks and lots of free time. With a little spare cash and nothing to do, people were inspired to tackle projects around the house. But, of course, no project can be completed without a trip to Lowe’s. Two years later, the pandemic quarantines are finally all but over and Lowe’s stock is down 30% YTD. Is this is good opportunity to buy the dip in a company that owns a duopoly in the home improvement industry? Let’s take a look.

Lowe’s (NYSE: $LOW) Most Recent Earnings

If you’re not familiar, Lowe’s is one of the largest home improvement retail chains in the world. In 2021, Lowe’s operated 2,197 stores across the United States and Canada. It is the second-largest hardware chain in the world behind The Home Depot. Together, The Home Depot and Lowe’s own the majority of the home improvement market. When just two companies control the market, it’s known as a duopoly.

In April, Lowe’s reported quarterly revenue of $23.66 billion for FY Q2 2022. This was down 3% from last year. Lowes also reported a net income of $2.33 billion which was up just 0.5%. Lowe’s also pays a dividend yield of 2.27%.

The last three quarters haven’t been particularly impressive for Lowe’s. Here’s one reason why.

Tough YoY Comparisons

The pandemic created a nightmare scenario for many businesses. But, as mentioned, home improvement retailers actually faired quite well. In particular, Lowe’s experienced a 24% spike in revenue, from $72.15 billion to $89.6 billion. This is impressive for a massive company like Lowe’s which already operates over 2,000 stores. Consequently, Lowe’s stock rose nearly 120% from 2020 to its all-time high in 2022.

Now, the quarantine pandemics are mainly over. Consumer spending is shifting away from home improvement towards other categories such as travel and dining out. This transition isn’t necessarily hurting Lowe’s sales, but it’s not helping either. The toughest thing for Lowe’s stock right now is the tough year-over-year comparisons. Since Lowe’s had such a stellar 2021, 2022 looks very average by comparison. This trend could continue through the rest of the year.

Lowe’s essentially had a 4.0 GPA in 2021. In 2022, it’s earning a 3.75 GPA. Still good, but not when you compare it to a 4.0.

Fortunately for shareholders, Lowe’s has a plan in place to start growing again.

Lowe’s 2022 Strategy

In 2022, Lowe’s strategy is to go after the professional market. This means that it wants to focus on serving customers that own construction businesses, as opposed to do-it-yourselfers.

Lowe’s estimates that the professional market is worth approximately $450 billion. If it can expand this segment of its business then it should be able to start growing revenue again. Part of its plan to grow this segment is to institute professional services in its stores including loaders, drop zones, and an entirely separate customer relationship management (CRM) software.

On top of that, here are three other factors that Lowe’s thinks will accelerate its business:

  • Increased wear and tear on homes due to remote work
  • Baby Boomers deciding to age in their home
  • Strong home price appreciation

Additionally, Lowe’s is in the process of transitioning to an omnichannel strategy. This type of strategy means that Lowe’s customers will be able to buy products online, pick them up curbside, as well as buy them in a store. Lowe’s enhanced digital experience will even allow customers to enjoy next-day (or even same-day) order fulfillment.

Omnichannel strategies have been particularly effective for other major retailers. In particular, Dick’s Sporting Goods has had a lot of success with an omnichannel strategy. Offering customers more ways to shop helps improve the customer experience, which typically leads to more sales.

Final Thought: Should You Buy Lowe’s Stock?

Lowe’s has an incredibly strong business and is a runner-up in a large market. The DIY home improvement market has been growing for years and is proven to be pandemic-resistant. These are both strong reasons to consider buying Lowe’s stock.

Additionally, since Lowe’s stock has had a dismal start to 2022, its valuation has improved. Lowe’s now has a price-to-earnings ratio (14.5) that is lower than its rival The Home Depot (17.9). This metric could be a sign that Lowe’s is valued more cheaply relative to The Home Depot. However, P/E ratios often don’t tell the full story.

Another reason to consider buying Lowe’s stock is that its management team is committed to  providing value to shareholders over the long run. This is evident through Lowe’s stock repurchase plan and strong dividend payments. Lowe’s plans to repurchase $12 billion in stock during 2022 and pays a 2.30% dividend yield. In general, companies don’t repurchase shares of stock unless the business is performing incredibly well. This is a sign that Lowe’s stock is a relatively safe bet for investors.

The biggest thing to be aware of before buying Lowe’s stock is the risk of inflation damaging its business.

What’s inflation risk?

Lowe’s sells lots of products that rely directly on raw materials. For example, it sells plywood and a number of other lumber products, plenty of steel products, fertilizers, etc. Right now, the prices of most raw materials are skyrocketing. If this doesn’t let up, it could squeeze Lowe’s profit margins and reduce its profitability. Or, it could force Lowe’s to increase its prices which could potentially hurt Lowe’s sales.

A few major retailers have already been hurt by inflation. Notably, Target. Target’s costs have increased but it has so far refrained from raising prices, so as to not alienate customers. This is one of the main reasons that Target’s stock slumped 30% in May. If you are considering buying Lowe’s stock, be sure to keep this inflation risk in mind.

I hope that you’ve enjoyed this Lowest stock forecast! Please remember that I’m not a financial advisor and just offer my own research and commentary. As usual, please base all investment decisions on your own due diligence.

The post Consumer Spending Is Shifting: Should You Still Buy Lowe’s Stock? appeared first on Investment U.

Read More

Continue Reading

Trending