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.
Baird believes Kohl's Corporation (NYSE:KSS) shares will get some downside protection from the recent Under Armour Inc (NYSE:UA) (NYSE:UAA) launch and 4.8 percent dividend yield after reporting weaker-than-expected holiday results.
Kohl’s reported weaker-than-feared holiday sales (November–December comps -2.1 percent) and margins, resulting in lowered F2016 adjusted-EPS guidance to $3.60–$3.65 from $3.80–$4.00). Baird models F2016 EPS of $3.64 and F2017 EPS of $3.70.
Baird expects fourth-quarter results, which will be reported on February 23, to be in line with reduced expectations. The brokerage anticipates EPS of $1.33, matching consensus.
“Kohl's did lap easier comparisons and government retail sales pointed to some sequential industry sales improvement; however, we're mindful that industry traffic remained very choppy,” analyst Mark Altschwager wrote in a note.
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As the challenging holiday results largely reflected in the stock, investors would be most focused on initial F2017 guidance.
The analyst expects top-line growth to remain challenging amid falling apparel demand, weak store traffic and shift of consumer dollars to Amazon.com, Inc. (NASDAQ:AMZN).
Altschwager maintains a Neutral rating on the shares, saying the “trough valuation, a 4.8 percent dividend yield, likely aggressive buybacks and upcoming top-line catalysts can provide shares some near-term downside protection around the upper-$30s to $40 level.”
At last check, shares of Kohl’s were down 0.36 percent to $41.82. The analyst has a price target of $44.
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.
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