by Ian Harvey
IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.
Tuesday, 21st June, 2016
Adobe Systems Incorporated (NASDAQ:ADBE) Calls
**OPTION TRADE: Buy the ADBE July 15 2016 105.000 call at approximately $0.80. Sell price is left to your own judgment.
Adobe Systems Incorporated (NASDAQ: ADBE), a San Jose, Calif.-based software products and services provider for professionals, marketers, application developers, enterprises and consumers, is set to post its quarterly earnings results after the market closes today, Tuesday, June 21.
For the May-ended quarter, Adobe is projected to report a 42% hike in earnings per share to 68 cents and a 21% sales increase to $1.4 billion. Those estimates would represent earnings and sales growth of 54.41% and 19.80%, respectively.
In each of the trailing four quarters, Adobe has beaten the Consensus Estimate by an average of 9.05%. The stock is up a slight 3.5% on the year, and the company owes most of its recent success to its shift to cloud-based technology.
Adobe continues to shifts from its legacy perpetual license model to its cloud-based software-as-a-service model, where software is delivered on demand over the internet.
Adobe has three cloud divisions: Creative Cloud, Marketing Cloud, and Document Cloud. By now, most have heard of Creative Cloud, its largest cloud business, which includes software such as Photoshop and Illustrator.
The decline of Flash has served to push Adobe away from its traditional products and into new areas of the technology world. With the often solid margins that come with the cloud business, this is proving to be a good thing.
Adobe shares climbed 2.5% to 97.99 at the close on the stock market yesterday. The stock rose to 98.75 intraday, briefly re-entering buy range after spending last week below the buy point at 98.10.
Seven investment analysts have rated the stock with a hold rating and twenty-one have issued a buy rating to the company. Adobe Systems presently has an average rating of “Buy” and an average price target of $102.31.
The company’s 50-day moving average price is $96.89 and its 200-day moving average price is $91.46. The company has a market capitalization of $47.81 billion and a price-to-earnings ratio of 60.88. Adobe Systems Incorporated has a one year low of $71.27 and a one year high of $100.56.
Monday, 20th June, 2016
FedEx Corporation (NYSE:FDX) Calls
**OPTION TRADE: Buy the FDX July 15 2016 170.000 call at approximately $1.70. Sell price is left to your own judgment.
FedEx Corporation (NYSE: FDX), which provides a portfolio of transportation, e-commerce and business services under the FedEx brand, is scheduled to release its fiscal fourth-quarter results on June 21. The company will report after the market close, with the consensus calling for earnings of $3.26 per share. During the same period last year, the company earned $2.66 per share, and the stock is up 8.9% on the year.
Like peer United Parcel Service, Inc (NYSE:UPS), FedEx has managed to overcome a slowing global economy and stay on track with its full-year earnings expectations.
The express segment has been the standout performer for FedEx this fiscal year, with segment operating income up 40% in the first nine months.
Despite a weakening global economy and a slowdown in industrial production-- which negatively affects FedEx business-to-business (B2B) deliveries -- have seen the following beneficial trends:
• Weak B2B demand is being offset by a strong business-to-consumer (B2C) demand.
• Strengthening e-commerce demand is creating growth opportunities for both companies.
Of the 15 analysts who cover the stock, 10 rate it a "strong buy, with a consensus target price of $182.14.
The stock’s 50 day moving average is $162.41 and its 200 day moving average is $150.49. The stock has a market capitalization of $43.55 billion and a price-to-earnings ratio of 46.08. FedEx has a 52 week low of $119.71 and a 52 week high of $177.65.