by Ian Harvey
June 08, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Five Below Inc. (NASDAQ:FIVE)
Here is an update of Five Below’s call options trade. This options trade was given as a consideration to “Earnings Predictions Members” of Stock Options Made Easy on Monday, June 04, 2018; and after reporting earnings has soared; providing a potential profit of 1,617% - and more profit could be expected!
PATIENCE PAYS OFF
YOU NEED TO BE IN TO PROFIT!
Five Below Inc. (NASDAQ:FIVE), a specialty retailer offering a range of merchandise for teen and pre-teen customers, reports earnings after the market closes. The consensus earnings estimate is calling for $0.32 per share on revenue of $292.29 million; but the Whisper number is higher at $0.34 per share. The company's guidance was for earnings of $0.31 to $0.34 per share on revenue of $290.00 million to $294.00 million. Consensus estimates are for year-over-year earnings growth of 113.33% with revenue increasing by 25.51%.
Overall earnings estimates have been revised higher since the company's last earnings release.
Shares of this discount retailer have climbed 36% this year.
Wall Street Still has maintained a bullish stance on Five Below ahead of earnings, with the majority of analysts covering Five Below maintaining a “buy” rating on the stock……continue reading…..
Option trade to consider: Buy the FIVE JUNE 15 2018 75.000 CALL at approximately $1.45.
Shares of Five Below climbed yesterday as the discount retailer posted a strong first-quarter earnings report, beating estimates across the board. As a result, the stock topped $100 a share for the first time ever, rising more than 24% to a record high of $100.97 a share.
The retailer, which sells only products for $5 or
less, said that comparable-store sales in the quarter increased 3.2%, which --
combined with aggressive store openings -- led revenue up 27.2% to $296.3
million, easily topping expectations of $290.9 million. The company opened 33
stores in the quarter, as the store base has expanded by 19% over the past
Looking ahead, management offered strong guidance, saying it expects revenue for the current quarter of $332 million to $335 million, or 17.7% growth from a year ago, on flat comparable-sales growth. It also sees EPS of $0.36 to $0.38.
For the full year, it
expects revenue to increase about 18% to a range of $1.502 billion to $1.517
billion, on comparable-sales growth of 1% to 2%. And it projects EPS of $2.42
to $2.48. Those numbers are generally ahead of analyst forecasts.
So, for members of the “Earnings Predictions Program” who managed to execute this trade given as a consideration by Stock Options Made Easy; an enormous potential profit of more than 1,617% made in less than four days -- Is it now time to exit the trade?
Entering the option trade at a cost of $1.45 or less; reaching as high as $24.90; one options contract would provide a profit of $1,472.00.
Now is the time to decide if it is worth continuing to hold these trades or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
Obviously, the “Earnings Predictions Program” is based on earnings expectations.
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 exceptional.
However, this is not to say all trades recommended, particularly for other membership programs, follow this pattern, but during earnings season this strategy has been very profitable.
Our proven track record says it all!!
If you not a member ……… SIGN IN HERE
What To Do Now…….
If you interested in being part of other profitable actions just click here……