In this clip from Motley Fool Money, Motley Fool contributors Ron Gross, Andy Cross, and Jason Moser share a stock on their radar this week. Tune in and find out why Cedar Fair LP (NYSE: FUN), Lowe's (NYSE: LOW), and Intuit (NASDAQ: INTU) are so exciting.
A full transcript follows the video.
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This video was recorded on Aug. 17, 2018.
Chris Hill: Time to get to the stocks on our radar. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: I got Cedar Fair LP, ticker symbol FUN. The country's third largest amusement park operator. Profitable recurring cash flow, regional monopolies. 6.7% dividend yield. Now, that's pretty fancy, but it's also because they have been struggling a little bit lately. Earnings were impacted by bad weather, higher wages, some slowing attendance. But I think in the longer term, shareholders will be quite rewarded. And, that almost 7% yield is pretty good.
Hill: Steve Broido, question about Cedar Fair?
Steve Broido: Ron, what do you do with a seasonal business like Cedar Fair in the winter? They can't operate. What do you do?
Gross: That's true. They're actually trying to increase prices and spread out the seasonality by offering membership passes, more like a membership model than a one-time season ticket purchase. We'll see if that helps smooth out a little bit. But you are correct. It is for sure a seasonal business.
Hill: Jason Moser, what are you looking at?
Jason Moser: On the heels of Home Depot's quarter, Lowe's, ticker LOW. Earnings report out next Wednesday, August 22nd. I'm going to be very interested to see management's narrative on the back half of the year here. We have Marvin Ellison, the new CEO over from JC Penney, of course. This will be his first quarter. Very service-oriented. I think he'll do a lot of great things with the business. We talk about the big aging home population out there. By 2020, 54% of the homes in this country are going to be 40 years or older. Plenty of opportunity. Lowe's is a smaller company than Home Depot right now, but I think, over the next five years, there's a potential better reward scenario out there for Lowe's than, perhaps, Home Depot.
Broido: At the end of the day, isn't this just a proximity play? Don't people just go to what's closer? If Home Depot's closer, I'm going there; if Lowe's is closer, I'm going there.
Moser: You know, I do agree with that, Steve. I do find some people are a bit more loyal to one brand or another. But I think that's really why you always find a Home Depot right next to Lowe's, anyway.
Hill: Andy Cross, what are you looking at?
Andy Cross: Intuit, the maker of Turbo Tax and QuickBooks and Mint personal software applications, reports next week. They had a monster growth in their QuickBooks Online. It grew 45% last quarter. Their QuickBooks ecosystem is up 41% on the revenue side. That's payments and payroll. Will that keep accelerating into the year?
Hill: And the ticker?
Broido: Do you ever see a situation where QuickBooks incorporates all its products into one suite?
Cross: They're starting to do that with their new Turbo app which, is Mint and Turbo Tax. It combines your personal finance life all together. Five million users. Will that continue to grow?
Hill: Steve, do you have a stock you want to add to your watch list?
Broido: I might take a look at Intuit.
Andy Cross has no position in any of the stocks mentioned. Chris Hill has no position in any of the stocks mentioned. Jason Moser has no position in any of the stocks mentioned. Ron Gross has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Intuit. The Motley Fool recommends Cedar Fair. The Motley Fool has a disclosure policy.