Better Buy: Amazon vs. Lowe's
There's no denying Amazon (NASDAQ: AMZN) is a powerhouse within the retailing arena. Digital Commerce 360 estimates that the company controls nearly one-fourth of the United States e-commerce market, while eMarketer puts the figure closer to 40%. Yet, the company continues to find ways to grow. Even before the COVID-19 pandemic took hold, Amazon boasted more than 10 consecutive years of revenue growth, and net income has absolutely exploded since the organization finally put all the pieces of its puzzle together in 2017. Analysts are calling for 18% revenue growth this year, despite the tough comps created by last year's surge in online shopping.
Picking a particular stock is a relative matter, though. Its price compared to earnings, business risks, and even changes in the public's perception of a company are all factors that can affect a stock's price.
That's why, of the two prospective purchases right now, home improvement retailer Lowe's (NYSE: LOW) is the better pick. Whereas Amazon's got a tough act to follow after an incredible 2020, Lowe's is starting 2021 with a head of steam most investors may still be underestimating. Two initiatives in particular should lead its unexpectedly strong growth.
Source Fool.com
