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.
Conn's Inc (NASDAQ:CONN) reported its second-quarter earnings ahead of expectations.
Over the next couple of years, the company’s performance is likely to be boosted by a ramp in younger store comparisons, according to KeyBanc Capital Markets.
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!
The Analyst
KeyBanc’s Bradley Thomas maintained an Overweight rating on Conn’s while keeping the price target unchanged at $41.
The Thesis
Although Conn’s faced tough comparisons in Hurricane Harvey markets, the negative impact of this was offset by a sequential improvement in non-Harvey markets, Thomas said in the note.
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.
The company delivered an EPS beat in the second quarter, backed by retail sales growth driven by new store openings. Earnings were also boosted by continued strength in the credit segment, which generated a strong portfolio yield of 21.9%.
Management plans to open 14 stores in 2019 and expects to enter the Florida market with several new stores in 2020. The company reiterated its long-term targets of low-single-digit same-store sales and 8-10% annual sales growth in the retail segment, the analyst said.
“Fundamentally, CONN’s credit business turnaround has been a success, benefiting from higher portfolio yield, better underwriting and lower static loss rates, lower cost of funding from the ABS (Asset Backed Securities) market, and better utilization with their new RTO (Rent to Own) partner,” Thomas wrote in the note.
The company’s efforts to drive store growth acceleration could be supported by the contribution from younger stores entering the comparisons base, the analyst said. He added that this should become a tailwind in 2020 and 2021 and could add 2-3%to same-store sales.
Price Action
Shares of Conn’s were down 3.23% to $23.08 at the time of publishing.
Related Links
66 Biggest Movers From Yesterday
44 Stocks Moving In Tuesday's Mid-Day Session
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.