1-800-Flowers.com Is One Of The Best Positioned Consumer Plays


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.


1-800-Flowers.Com Inc (NASDAQ:FLWS) is scheduled to announce its Q2 FY 2017 results on Tuesday. The company would likely report in-line results and maintain its annual guidance, which may prove conservative, Wunderlich’s Eric Beder said in a report. He reiterated a Buy rating on the company, with a price target of $12.

Strong Positioning

Beder commented that 1-800-Flowers.com was “among the best positioned consumer plays in our group,” mentioning the reasons as:

  • Strong gifting offering: The Harry & David offering diversified the mix meaningfully during Christmas 2016.
  • An integrated gifting offering: Christmas 2016 was also the first season for 1-800-Flowers.com’s fully-integrated branding website, offering all of the company’s brands on one platform, which may have driven increased multi-branded purchases.
  • Continued market share gains: The company gained further market share from competitor FTD Companies Inc (NASDAQ:FTD), despite being “in the midst of a management change and retooling the business.”
  • A marked shift to mobile.

“Further, we believe the company aggressively offered a higher value-added offerings to the Christmas mix, which should help margins,” Beder noted, while expressing optimism regarding continued momentum in 1-800-Flowers.com’s performance going ahead.

Shares of 1-800-Flowers closed Friday's session at $9.85.


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.


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!

Posted In: Analyst ColorEarningsLong IdeasNewsGuidancePreviewsReiterationAnalyst RatingsTrading IdeasEric BederWunderlich