first_imgI’d invest in this resilient share right now Kevin Godbold | Monday, 27th April, 2020 | More on: LOK Our 6 ‘Best Buys Now’ Shares I’m always hunting for defensive, cash-generating and resilient stocks if they’ve growth potential. That’s why I’m keen on the FTSE 100’s AstraZeneca. But the Lock’n Store (LSE: LOK) share price looks perky today on the release of the half-year results report, and I like that company too.As with many successful and growing publicly-listed companies, this one has a good record of advancement in the financial figures. And that includes an impressive escalation of the shareholder dividend.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A sought-after shareBut the stock’s charms haven’t gone unnoticed. The valuation is high, with the forward-looking earnings multiple running near 40 for the trading year to July 2021. However, even after a mighty bounce-back from its recent coronavirus lows, at 570p, the share still needs to advance by around 27% to hit its February high near 725p. I think there’s every chance it will.A rich valuation tends to automatically put some investors off a stock, and many will move on to the next opportunity. I did that myself for years but discovered such an approach kept me out of most of the best outperformers on the stock market.Perhaps the key to successfully investing in higher-rated companies is to focus on growth. You should look for a record of solid improvement in the financial numbers. And that’s what I see in Lock’n Store. Of course, the big risk of flirting with higher valuations is any set-back operationally could cause a valuation down-rating. This leads to a plunging share price.As well as risks, there are opportunities. For example, if you’d have put money into Lok’n Store 10 years ago and left it there until today, you’d be sitting on a capital gain of almost 600%. But some of that gain could have occurred because of a re-rating of the valuation upwards as the growth story became recognised by the market. On top of those gains, you’d have enjoyed a rising income return from the shareholder dividend.Decent trading and growth on trackToday, the company reported decent progress in most of the ‘right’ figures. And the directors even pushed up the interim dividend by 9%. That decision tells us much. Indeed, all the stores remain open “while maintaining social distancing measures.” On top of that, Lok’n Store has been paying all its staff as normal through the crisis with “minimal use of [the] government furlough scheme.”Trading so far in the firm’s current trading year to July has been “resilient.” And I think the company’s performance through this pandemic underscores the strength of the business model. Now, I’m beginning to understand why the stock is prized by investors.Meanwhile, the expansion pipeline looks healthy with 16 sites that chief executive Andrew Jacobs reckons will “significantly increase operating space over the coming years.”  It seems that neither the growth story nor current trading has stalled. I’d be a buyer of the shares here. See all posts by Kevin Godbold Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997”last_img

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