2 great deals you can buy today

It’s hard to believe, at least for me, that it has been almost a year since the pandemic crushed the stock market in March 2020. The market has rebounded from the lows, and smart investors have taken the opportunity to seize some shares of large companies that have been crushed with the larger market. But with the stock market already at record highs, it doesn’t seem like there is too much good business left to be done.

Many large companies have seen their stock prices soar, even though sales have not fully recovered. For example, DisneyThe company ‘s sales fell 22% in the first quarter of fiscal 2021, but its share price is 44% higher than a year ago.

And “good deal” doesn’t always mean cheap. There are a lot of companies struggling with cheap stocks, which is not good business, but rather value traps.

But here are two strong companies whose stocks are underperforming across their business and can still be bought cheaply.

Old company, new management

Lowe’s (NYSE: LOW) opened his first store in 1921, but he constantly plays second fiddle to the leader in home improvement Home Depot, which has only existed since 1978.

The second-tier company hired Marvin Ellison as CEO in 2018, and it has made major strides in time for the pandemic. It outclassed its main rival, with comps rising 30% in the third quarter ended October 30.

Lowe invested heavily in his digital infrastructure shortly before the pandemic hit, and digital sales rose 106% in the third quarter. He is also focusing on his professional activity and comps have increased by more than 20% in this segment.

The company expects sales growth to slow as coronavirus vaccines are rolled out and people start spending their money elsewhere, but its improved new digital program should allow sales to continue to grow. Digital only accounts for 7% of total sales, and Lowe’s has made new investments in its supply chain in recent months, including opening distribution centers and distribution centers to handle digital orders. He’s also renovating store layouts to be project-focused rather than product-driven, which Ellison says will form a more intuitive shopping experience for customers, and professionals in particular.

Lowe is in the exclusive Dividend Kings club, which means he has increased his dividend every year for more than 50 years. It’s not a very high return at 1.32%, but it’s growing steadily and steadily. Lowe’s shares have gained 80% over the past three years and are trading at a reasonable profit 24 times in 12 months. But sales and profits will likely continue to rise, as will the share price.

Old business, new business

American Express (NYSE: AXP) has been around since 1850, but it has modernized with technology to nurture its uncompromising dedication to customer service.

Revenue plummeted during the pandemic, dropping 29% in the second quarter, and the company did worse than similar businesses as its customers typically spend a large amount on travel and entertainment, which plummeted during lockdowns. T&E accounted for 28% of total spending in Q4 2019, but only 12% in Q4 2020.

On the flip side, its more affluent clientele can still afford to spend under difficult circumstances, and non-T&E spending has already surpassed pre-pandemic levels. Revenue improved to an 18% decline in the fourth quarter ended Dec. 31, and American Express posted revenue throughout the year, including $ 1.76 in Q4, a 13% decline from year after year.

The financial services company, known for its credit cards, also offers small business solutions to merchants, including digital solutions through its financial technology platforms. Its cards have won numerous awards and customers shelled out $ 1.2 billion in annual fees for the privilege of owning an American Express card in the fourth quarter, a 13% year-over-year increase that represents 13% of total turnover.

It is poised to experience strong growth as the pandemic recedes and customers cope with their pent-up travel requests. It may take a while, but that’s why the stock is a good deal right now.

American Express has maintained its dividend throughout the pandemic, which also drops 1.32%. Its stock price has risen 35% over the past three years, and stocks are trading at 35 times earnings over 12 months, which is not very cheap. But that price hit new highs just before the pandemic hit it, and as the business recovers it is expected to hit new highs again.