27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
With shares of Parker-Hannifin Corp (NYSE:PH) hitting Buckingham's price target, the firm said it's stepping to the sidelines.
The Analyst
Buckingham Research analyst Neil Frohnapple downgraded Parker-Hannifin from Buy to Neutral.
The Thesis
Parker-Hannifin stock has performed strongly over the past three months, advancing 16 percent compared to S&P 500's 9 percent increase and Eaton Corporation, PLC Ordinary Shares (NYSE:ETN)'s 5 percent gain, analyst Frohnapple said in a Friday note.
On a relative basis, the analyst said other multi-industrial companies such as Carlisle Companies, Inc. (NYSE:CSL) currently offer more upside.
However, Frohnapple said his positive view on the fundamental outlook for Parker-Hannifin hasn't changed, with the analyst expecting favorable global PMI data, internal margin initiatives and CLARCOR Inc. (NYSE:CLC) synergies to drive double-digit earnings growth over the next two years.
Buckingham still feels the company's 2018 guidance could prove conservative.
Given that the consensus earnings per share estimate is already above the upper end of the company's guidance range, the firm said a guidance raise is widely expected.
The firm said its best-case and worst-case scenarios for the company's shares are $225 and $175, respectively.
Price Action
Parker-Hannifin shares are up over 46 percent over the past year.
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27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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