27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
2017 was a solid year for the multi-industry segment, and Goldman Sachs analysts said they're encouraged that favorable headwinds throughout the year will persist into 2018 for a select few companies, including Ingersoll-Rand PLC (NYSE:IR).
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Goldman Sachs' Joe Ritchie upgraded Ingersoll-Rand's stock rating from Neutral to Buy with a $100 price target and named the stock Goldman's "favorite value idea" in the space.
The Thesis
The case for buying Ingersoll-Rand's shares at this point in time is straightforward: the stock has been a laggard since the start of 2017, having gained just 15 percent versus an average of 25 percent among peers, Ritchie said in an industrywide research report. (See Ritchie's track record here.)
The trend could reverse in 2018 amid expectations for a reacceleration in the company's EPS and free cash flow from, Ritchie said. The EPS and FCF drivers are, according to the analyst:
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
- Sustained growth in the climate business.
- An acceleration in industrial growth.
- Improved price and cost headwinds.
- Improving mix in the China commercial HVAC business.
Ingersoll-Rand's stock appears "inexpensive" at current levels, as it's trading at 15x the analyst's 2019 EPS estimate, which represents a 20-percent discount to coverage versus a 10-to-15 percent historical average, Ritchie said.
Goldman's $100 price target implies a 17x multiple on 2019 EPS — which is still an 11-percent discount to the group, making the stock an attractive buy at current levels.
Price Action
Shares of Ingersoll-rand were trading higher by 1.61 percent at $87.61 at the time of publication.
Benzinga's Top Upgrades, Downgrades For December 8, 2017
The Market In 5 Minutes: Bitcoin's New High, Strong Payroll Numbers, Brexit Update
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.