Long Position on MNRO @ $83.00 on 4/8/2019 (Momentum)

Monro, Inc. (MNRO) provides automotive undercar repair, and tire sales and services in the United States.

The company offers range of services on passenger cars, light trucks, and vans for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment.

It also provides other products and services, including tires and routine maintenance services, including state inspections. The company's maintenance services comprise oil change, heating and cooling system ‘flush and fill' service, belt installation, fuel system service, and a transmission ‘flush and fill' service.

In addition, it replaces and services batteries, starters, and alternators, as well as offers air conditioning services. The company operates its stores under the brand names of Monro Muffler Brake & Service, Tread Quarters Discount Tire, Mr. Tire, Autotire Car Care Center, Tire Warehouse, Tire Barn Warehouse, Ken Towery's Tire & Auto Care, The Tire Choice, Car-X, and McGee Tire.

It has 1,150 company-operated stores, 102 franchised locations, 5 wholesale locations, 2 retread facilities, and 2 dealer-operated stores located in 27 states. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. The 50-day moving average is shown in brown. 

Monro reported 3rd Quarter December 2018 earnings of $0.61 per share on revenue of $310.1 million. The consensus earnings estimate was $0.58 per share on revenue of $309.9 million. The company said it continues to expect fiscal 2019 earnings of $2.30 to $2.40 per share on revenue of $1.185 billion to $1.215 billion. The current consensus earnings estimate is $2.38 per share on revenue of $1.20 billion for the year ending March 31, 2019.

Entry Point: $83.00

Trading Range: $51.45 - $89.72

Stop Loss: $78.85

Target Price: $91.30

Updates

6/20/2019 10:39:32 AM

MNRO closed at $87.60

Position closed on 6/20/2019 at price of $87.60 with a 5.54% gain in 73 days.

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