On Tuesday, Autozone (AZO) is awaited to post 3Q EPS of $13.02 vs. $15.99 the prior year on revenue of $2.6B compared to $2.8B last year. The Co is the leading retailer and distributor of automotive replacement parts and accessories in the US. On May 15th, Melvin Capital Management announced that they purchased 2.7% of Co's outstanding stock, totaling to about 630,000 shares for 676 million dollars, according to a 13F filing with the Securities and Exchange Commission (SEC). Technically speaking, the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $1022.66 and $962.51). We are looking at the final target of $1257.00 with a stop-loss set at $975.00.
On Wednesday, Autodesk (ADSK) is anticipated to release 1Q EPS of $0.79 vs. $0.45 the prior year on revenue of $862.8M compared to $735.5M last year. The Co is a major supplier of computer-aided design software and on May 19th, the Co premiered its new BIM 360 Assets module within the Autodesk Construction Cloud. The new module allows users to track project assets through the entire building lifecycle and will be released in mid-June. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $181.72 and $165.81). We are looking at the final target of $229.30 with a stop-loss set at $177.20.
On Thursday, Costco Wholesale (COST) is expected to announce 3Q EPS of $1.93 vs. $1.89 the prior year on revenue of $37.1B compared to $34.7B in the year before. The Co operates a chain of warehouse stores and on May 6th, the Co reported that same-stores sales for April were -4.7% on month, above the -6.5% estimate. From a technical point of view, the RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is trading under its 20 day MA ($304.95) but above its 50 day MA ($301.04). We are looking at the final target of $277.00 with a stop-loss set at $316.00.
Also on Thursday, Dollar General (DG) is likely to unveil 1Q EPS of $1.70 vs. $1.48 the prior year on revenue of $7.4B compared to $6.6B last year. The Co operates a chain of discount stores and its current analyst consensus rating is 21 buys, 7 holds and 1 sell, according to Bloomberg. Looking at a daily chart, the RSI is above 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $177.72 and $165.00). We are looking at the final target of $197.60 with a stop-loss set at $174.30.
Looking at the S&P 500 CFD, The index has broken above a consolidation zone on a 30-min chart and remains supported by its 30 period moving average. As long as 2980 remains support we anticipate further advance towards 3000 and 3025 resistance levels.
Source: GAIN Capital, TradingView
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.