Opportunities This Week

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

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