AutoZone, Inc. (NYSE:AZO) Option Calls
Provides 364% Profit!
by Ian Harvey
December 06, 2017
AutoZone, Inc. (NYSE:AZO)
Here is an update of AutoZone, Inc. (NYSE:AZO) winning options call trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, December 04, 2017 -- in the article “Earnings Predictions for the Week Beginning December 04, 2017”-- producing excellent potential profits of 364% within 24 hours of executing the trade!
YOU NEED TO BE IN TO PROFIT!The Recommendation……
AutoZone, Inc. (NYSE:AZO) – this auto parts retailer is scheduled to report its fiscal first-quarter numbers before the market opens. The consensus earnings estimate is $9.80 per share on revenue of $2.54 billion, up from $9.36 during the same period last year; and the Earnings Whisper number is $9.85 per share.
After an early summer sell off following a disappointing quarterly report in May, AZO shares have trended higher over the last five months, due in part to a strong fiscal Q4 report in September. Even with the recent gains, the stock remains attractively priced, with a P/E of just 15.5, so there is upside potential should the company top estimates for the recent quarter.
Consensus estimates are for year-over-year earnings growth of 4.70% with revenue increasing by 2.92%.
AZO was recently trading at $687.08, down $126.62 from its 12-month high and $195.95 above its 12-month low. Overall technical indicators for AZO are bullish and the stock is in a strong upward trend.
The stock has recent support above $625.00, and recent resistance below $703.50. Of the 17 analysts who cover the stock, six rate it a “strong buy”, and 11 rate it a “hold”.
** Option trade to consider: Buy the AZO DEC 15 2017 720.000 CALL at approximately $9.70.
During its fiscal first quarter of 2018, AutoZone, Inc. reported earnings per share of $9.96. This is an increase over its earnings per share of $9.33 from the same time last year. It also helped AZO stock by beating out Wall Street’s earnings per share estimate of $9.81 for the period.
AutoZone, Inc. reported net income of $281 million in its fiscal first quarter of 2018. The seller of automotive parts and accessories reported net income of $278.13 million in its fiscal first quarter of 2017.
Revenue reported by AutoZone, Inc. for its fiscal first quarter of the year was $2.59 billion. This is up from its revenue of $2.47 billion reported in the same period of the year prior. It also came in above analysts’ revenue estimate of $2.54 billion for the fiscal first quarter of 2018 and was a boon to AZO stock.
During the quarter, AutoZone opened 16 new stores, relocated one and closed another in the United States. The company also opened five new stores in Mexico. As of Nov 18, the company had 5,480 stores across 50 states in the United States, the District of Columbia and Puerto Rico, 529 in Mexico, 26 Interamerican Motor Corp. branches and 14 stores in Brazil. The total store count was 6,049 as of that date.
The shares were up 5.7% to $750 just before the open; and touched $763.29 shortly after the opening. At the time of the recommendation, Monday morning, AZO stock price was sitting at approximately $680.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 364% within 24 hours.
ACTION TO TAKE…….
"YOU NEED TO BE IN IT TO WIN IT!"
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……