by Ian Harvey
May 13, 2020
Upwork shares have more than doubled since hitting all-time lows in mid-March. And premarket, are already up over 6%.
And, Stock Options Made Easy “Mentorship” Members are up 367% potential profit based on a CALL OPTIONS trade.
“Mentorship” Members executed a trade on UPWK on Wednesday, April 29, 2020 and have now pocketed potential profits of 367%! And today more profit is expected as the pre-market outlook shows another +6.0% rise.
The recommended options trade - ** OPTION TRADE: Buy UPWK JUL 17 2020 10.000 CALL at approximately $0.90.
The Recommended Trade…..
“A small stock price doesn't always mean a small company. There are several factors that go into determining a company's value, including its market capitalization -- the price of each share of the company multiplied by the number of shares outstanding. A stock with a small price could actually be a big company, depending on how many shares are traded on the open market.
It is often the case that stocks trading for lower values tend to have smaller market caps. But that also means they have more room to grow.
And, Upwork Inc (NASDAQ: UPWK), which is uniquely poised to benefit from the gig economy, fits this category. According to research, the gig economy is projected to grow at a 17% compound annual growth rate (CAGR) until 2023 due to evolving social attitudes and digitization rates around the globe.
The gig economy is based on flexible, temporary, or freelance jobs, often involving connecting with clients or customers through an online platform. The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand for flexible lifestyles.
With the coronavirus pandemic boosting interest in work-from-home opportunities, Upwork may post better-than-expected results in 2020. Cash stands at $48.3 million compared to a net loss of $16.7 million in 2019......
Upwork has been helping companies’ staff critical tasks for 20 years. With the Covid-19 pandemic, remote work has gone mainstream.
Upwork works with small and medium-sized businesses all the way up to Microsoft (MSFT).
Many companies simply can't find the talent they need in their local area. Now with the pandemic, more companies are being forced to try remote work.
As an online marketplace for freelancers and contractors, Upwork is a natural beneficiary of the new normal. It's giving disrupted businesses the ability to farm out white-collar gigs, and there are plenty of skilled specialists at home these days that are either out of work or have the spare bandwidth to take on side jobs.
UPWK has rallied above the now rising 50-day moving average line and just touched the underside of the still declining 200-day moving average line. Trading volume has increased from late April as the UPWK story gets around to traders.
The market didn't discriminate during the coronavirus correction, sending the stock all the way down to $5.14 on March 18. But since then, Upwork has clawed its way back to the low teens.
Upwork posted better-than-expected financial results last week, with revenue up 21% to $83.2 million in the first quarter. Back in February, it was only forecasting a top line in the $81.5 million to $82.5 million range.
“With the global spread of the coronavirus significantly accelerating the adoption of remote work and increasing the value that companies place on workforce flexibility, Upwork’s solutions for customers are more relevant than ever,” said Hayden Brown, President and CEO of Upwork. “We have smoothly pivoted to a fully remote work model for our own teams and are focused on fulfilling the critical needs of our customers at this moment, from supplying them with the skilled talent they need to deliver on changing demands, to helping them migrate their existing team members onto our platform to enable continuous operations. We see promising indicators in our business, and continue to be very optimistic about our future.”
Although the company has withdrawn its financial guidance for 2020, it has provided guidance for the second quarter. Upwork expects its second-quarter revenues to grow by $79 million–$81 million in the second quarter.
Wall Street analysts expect Upwork to report sales of $79.8 million in the second quarter. The figure would mark an increase of 7.5% YoY compared to $74.3 million in the second quarter of 2019.
Also, analysts expect the company to report an adjusted EPS of -$0.07 in the second quarter. Currently, analysts expect an 11.5% and 13.6% rise in the company’s 2020 and 2021 revenues, respectively. Analysts also expect an adjusted EPS of -$0.25 and -$0.15 in 2020 and 2021, respectively.
Among the seven analysts covering Upwork stock, five recommend a “buy,” while two recommend a “hold.” None of the analysts recommend a “sell.” Analysts have an average target price of $11.29 on Upwork. The target price implies a premium of 7.4% based on the closing price of $10.51 on Monday.
Currently, Upwork stock is trading at a 40.8% discount from the 52-week high of $17.75. The shares are trading at a premium of 104.5% from the 52-week low of $5.14. Can the stock sustain its growth momentum?
Upwork should continue to benefit from the current work-from-home trend. Many companies are also looking for remote working options to save on costs.
Are You Ready To Get On-board With An Upwork Options Trade?
Will Upwork Continue To Rise After Today?
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An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!