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.
Benchmark analyst Michael P. Ward reiterated a Buy rating on Group 1 Automotive, Inc. (NYSE:GPI), raising the price target to $340 from $300.
GPI recently reported financial results for the second quarter, highlighted by quarterly total revenues of $4.6 billion and a total gross profit of $775.5 million.
Thus far, margins have exceeded expectations, despite price volatility in the used vehicle market and below-trend demand in the new vehicle industry, the analyst notes.
In the first half, GPI has added $1 billion in annual revenue from acquisitions and share repurchase reduced share count, Ward adds.
Going ahead, the analyst expects the variable gross margins to decline over the next two years; however, the performance will be above historical levels.
In addition, Ward expects industry demand to be higher in both the U.S. and the U.K. For U.S. New Vehicle, the third-quarter sales are expected to reach 3.9 million units, up 16% from the year-earlier total.
For FY23, the analyst notes that U.S. New Vehicle sales are on track to reach 15.5 million units, above estimates of 14.5-15.0 million units heading into the year.
Overall, the analyst raised the 2023 EPS estimate of GPI to $44.40 per share from $44.00.
Ward also increased 2024 estimate of GPI to $44.35 from $44.25 to reflect the benefit of recent acquisitions, partially offset by the adverse impact of higher interest rates.
Price Action: GPI shares are trading higher by 1.4% to $257.63 on the last check Monday.
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.
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!