May 2021 Stock Picks
CONSTANTINE LYCOS, FOUNDER AND CEO AT LYCOS ASSET MANAGEMENT
It’s time for some more stock picks!
Big Lots (NYSE:BIG)
The first stock pick recommendation is a retail company, Big Lots. They are a discount retailer in the US. Their products include food consumables, soft home products, hard home products, furniture, electronics, accessories, seasonal products, and so on.
Retail business is good, especially on the discount side, and this company is doing fairly well at the moment. They have large operations in Florida that have, more or less, reopened after COVID, and California, but also throughout the United States. The stock has underperformed its big box peers, such as Costco and Target. It’s only up about 75% over the last five years, and those other companies’ stock is up around 200%. So, hopefully while the company’s delivering its financial performance, the stock can catch up to the other retail stocks. This is pick number one.
Triumph Bancorp (NYSE:TBK)
Next one is a bank, a bank based in Texas, called Triumph Bancorp. The environment for banks is good at the moment. For the first time in a few years now, the yield curve is upward sloping. This means short term rates are lower than medium and longer term rates. This is good for banks as they borrow on the short end of the curve and they lend money out for five plus years at the higher rate. So, they’re making money on the credit spread as well as the term spread. The stock is doing well the company’s doing well. We like banks at the moment, so this is one of them.
LGI Homes (NASDAQ:LGIH)
And the third pick for today for May 2021 is LGI Homes, a home builder in the US. They are involved in both lower end and luxury home construction, with townhomes under one brand and luxury homes under a different brand. The residential real estate market is pretty hot right now. So, by having exposure to home builders, hopefully portfolios can boost their returns from that exposure.