Earnings Charts for This Week
This week is starting off like last week, as futures are green and the market looks primed to continue to climb the ladder to all-time highs. With Sequestration cuts looming on Friday, and all the hype like the fiscal cliff, one would think the market would be walking on egg shells instead of showing incredible strength.
We were given a 2% cut on our paychecks via the tax increases to start the year, whats the big deal if the US govt is going to cut spending by 2%. The embarrassing part is it’s forced on them rather then in a more diplomatic fashion. Either way, we shall see how this plays out as the week progresses. Figure folks will need a reason to lock more profits in on the way up so we may have a bit of volatility towards the end of the week.
If you missed it last night here is the link for the week ahead:
Quite a few earnings reports this week. I like AZO and PCLN and will position for some calls on both today and tomorrow. You also have retailers this week and hopefully SHLD, which we currently have calls on.
DDD completed the stock split today and will look to grab a few calls for earnings after hours:
05:24 PM EST, 02/05/2013 (MidnightTrader) -- 3D Systems Corporation (DDD) declared a three-for-two split of the company's common stock in the nature of a 50% stock dividend. On February 22, 2013, each stockholder of record at the close of business on February 15, 2013 will receive one additional share for every two shares held on the record date.Trading is expected to begin on a split-adjusted basis on February 25, 2013
Here are some of the analyst changes today:
AB InBev upgraded to Neutral from Reduce at Nomura
Akamai upgraded to Outperform from Neutral at Macquarie
Macquarie believes Akamai's (AKAM) miss was due to the Netflix (NFLX) migration to its own CDN and that when Akamai fills the capacity it will be at higher margins. As a result, the firm views the recent sell-off as a buying opportunity and upgraded shares to Buy with a $42 price target, raised from $41.50.
Apple price target lowered to $710 from $750 at Needham
Needham lowered its price target for Apple shares but maintained its 2013 and 2014 earnings estimates for the company. The price target drop followed Needham's semi-annual exercise of valuing Apple's products. The firm keeps a Buy rating on the stock.
Stifel Nicolaus maintains Flowserve Corporation (NYSE: FLS) with a Buy and raises the price target from $169.00 to $175.00.
BMO Capital maintains Flowserve Corporation (NYSE: FLS) with a Outperform and raises the price target from $178.00 to $182.00.
Jefferies maintains Flowserve Corporation (NYSE: FLS) with a Hold and raises the price target from $152.00 to $175.00.
Still love SODA, SAM, OPEN, SHLD, BNNY, BPT, DNKN, CROX and will look to add a few positions this week for earnings and swing plays.
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Will try for a few AZO calls, as well as grabbing some PCLN calls for earnings which I may wait until tomorrow for. I am playing for a 10%+ move in PCLN and will grab way OTM calls for a possible few week move over $800. DDD calls are not priced yet so will have to wait for open to gauge a good entry.
Lets have a great day!!
We have written about AutoZone, Inc.(AZO) many times over the past year. This is a stock that has moved consistently to the upside since hitting $84 in late 2008. The stock price has been buoyed by great earnings and a strong buyback program. Last week Advanced Auto Parts (AAP) gave some weak guidance which shook the auto parts sector. AutoZone, Inc (AZO) took it on the chin falling nearly 6% last thursday to close at $365.58. Folks were fearing a slowdown and worried there would be some effects on AutoZone, inc (AZO) earnings. They were wrong as AutoZone, Inc (AZO) reported earnings this morning that missed slightly on the revenue side, but beat everywhere else. Traders were skittish and took the stock down 4% pre-market only to watch it trade into the green late this morning.
We think it is inevitable for the stock to trade over $400 in the short term, and purchased $410 June 16th calls @ .41 average.
May 22nd Watchlist
What a great day yesterday, as the market shook off an opening drop and ramped up the rest of the day. Moves like that are the kind that options traders dream for… One directional! We haven’t had that in a few weeks, and most of the calls purchased Friday or at the open, were up big. Of course AAPL was the big winner as the 565 strikes were the most profitable trade. Lets see if AAPL continues its course, but remember to always lock some in on the way up and never look back!
Autozone reported earnings this morning. Analysts were expecting an EPS of $4.44, Autozone reported $4.68. A key quote from Autozones press release,
"This past quarter marked our twelfth consecutive quarter of 20% growth in earnings per share and our twenty-first consecutive quarter of double digit growth."
Growth stocks were all the buzz at the start of the year, and seemed to get old as we head towards the end of the year. AZO continues to be the one that is diamond in the rough, and should see more upside here, irregardless of its current hefty share price. AZO's low BETA allows for option traders to buy calls on the cheap, and should reap large gains as it moves to the upside here.
This stock is no NFLX, so when i see the company buying almost 1 million shares @ $325 avg last Quarter, with $650 million left to purchase, I feel even more confident of continued upside here.
Looking at the $360 Dec 17th Call for .50/.55. Will take half off when the calls are $1.