Long Position on SPSC @ $105.00 on 4/3/2019 (Momentum)

bullish flag on $SPSCSPS Commerce, Inc. (SPSC) provides cloud-based supply chain management solutions worldwide.

It offers solutions through the SPS Commerce platform, a cloud-based platform that enhances the way retailers, suppliers, grocers, distributors, and logistics firms manage and fulfill orders, administer sell-through performance, and source new items.

The company offers Trading Partner Community solution, which enables retailers, grocers, and distributors to introduce changes to their supply chain requirements to their trading partner community, and onboard new vendors to receive their first orders; Trading Partner Fulfillment solution that provides fulfillment automation and replaces or augments an organization's existing staff and trading partner electronic communication infrastructure; and Trading Partner Assortment solution to manage individual attributes associated with each item a retailer or supplier sells.

It also provides Trading Partner Analytics solution, which consists of data analytics applications that allow customers to enhance their visibility and analysis of their supply chains; Trading Partner Sourcing solutions that enables retailers to source providers of new items, suppliers to connect with new retailers, and retailing community; and Other Trading Partner Solutions, such as barcode labeling, planogram services, and scan and pack application that helps trading partners process information to streamline the picking and packaging process.

The company sells its solutions through retailer, supplier, and logistic sales representatives to small- to mid-sized suppliers, as well as retailers, distributors, third-party logistics providers, and other trading partners. 

Shares have formed a bullish "flag" following the company's latest earnings report. Sps Commerce (SPSC) reported 4th Quarter December 2018 earnings of $0.57 per share on revenue of $65.2 million. The consensus earnings estimate was $0.46 per share on revenue of $63.9 million. The company said it expects first quarter non-GAAP earnings of $0.50 to $0.52 per share on revenue of $65.8 million to $66.3 million. The current consensus earnings estimate is $0.49 per share on revenue of $66.0 million for the quarter ending March 31, 2019. The company said it expects 2019 earnings of $2.03 to $2.09 per share on revenue of $273.7 million to $275.7 million. The current consensus earnings estimate is $2.07 per share on revenue of $274.4 million for the year ending December 31, 2019.

Higher share prices are expected for this stock.

 

Entry Point: $105.00

Stop Loss: $99.75

Trading Range: $61.87 - 113.31

Target Price: $115.50

Updates

7/26/2019 10:26:32 AM

Closed at $116

Position closed on 7/26/2019 at price of $116.00 with a 10.48% gain in 114 days.

Back to Portfolio