NEW DIRECTIONAL CALL PLAYS

Euronet Worldwide - EEFT - close: 62.04 change: +0.68

Stop Loss: 59.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 335 thousand
Entry on May -- at $---.--
Listed on May 20, 2015
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The main driver behind share price appreciation is supposed to be earnings growth. That isn't always the case in the stock market but for EEFT they are delivering on the earnings front. EEFT is in the services sector.

According to the company, "Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products.

Euronet's global payment network is extensive - including 20,364 ATMs, approximately 69,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 47 countries; card software solutions; a prepaid processing network of approximately 681,000 POS terminals at approximately 306,000 retailer locations in 33 countries; and a consumer-to-consumer money transfer network of approximately 243,000 locations serving 134 countries. With corporate headquarters in Leawood, Kansas, USA, and 54 worldwide offices, Euronet serves clients in approximately 160 countries."

EEFT's earnings history has been strong. They have beaten Wall Street's earnings estimates on both the top and bottom line three out of the last four quarters. It would have been four quarters in a row but their most recent report missed analysts' revenue estimate.

EEFT delivered its 2015 Q1 results on April 28th. Analysts were expecting a profit of $0.54 a share on revenues of $403.75 million. EEFT results saw earnings per share rise +22% from a year ago to $0.56. Revenues were up +12% to $395.2 million. It's worth noting that 70% of EEFT's revenues are outside the U.S. The rise of the dollar last quarter was significant. On a constant currency basis EEFT's revenues were up +25%.

Here's an excerpt from EEFT's earnings press release:

"For the first quarter, we delivered 55% constant currency operating income growth and 22% adjusted cash EPS growth - the ninth consecutive quarter we have achieved double-digit, year-over-year adjusted cash earnings per share growth," stated Michael J. Brown, Euronet's Chairman, Chief Executive Officer and President. "Each segment delivered strong constant currency operating results. Money transfer had another outstanding quarter benefiting from continued organic growth, the launch of the Walmart-2-Walmart product and the acquisition of HiFX. epay contributed double-digit operating income growth for the second consecutive quarter driven by continued expansion of non-mobile content. And, EFT further expanded its ATM and POS networks across Europe and India."
The stock has been building on a bullish trend of higher lows. Today shares are poised to breakout past resistance at $62.00. The point & figure chart is bullish and forecasting at $75.00 target. Tonight we are suggesting a trigger to open bullish positions at $62.25.

Trigger @ $62.25

- Suggested Positions -

Buy the AUG $65 CALL (EEFT150821C65) current ask $2.35
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Weekly Chart:


Roper Technologies - ROP - close: 176.89 change: +0.28

Stop Loss: 173.25
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 441 thousand
Entry on May -- at $---.--
Listed on May 20, 2015
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
2015 is shaping up to be a record-setting year for ROP with profits on track for a new high. Investors have pushed the stock to new highs as well. ROP is up +12.8% year to date versus a +3.3% gain in the S&P 500.

ROP is in the industrial goods sector. The company just recently changed their name from Roper Industries to Roper Technologies.

According to the company, "Roper Technologies is a diversified technology company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper provides engineered products and solutions for global niche markets, including software information networks, medical, water, energy, and transportation."

Their most recent earnings report was April 27th. ROP reported its 2015 Q1 results. Earnings per share rose 5% from a year ago to $1.55. Analysts were expecting $1.52. Revenues were up +3.7% to $865 million. That actually missed estimates of $873 million but the market didn't seem to care. ROP said their adjusted gross margin hit a new high, rising 140 basis points to 60.0%.

Management did lower their Q2 guidance but they raised their full year 2015 guidance. Again, traders seemed to look past the short-term lowered guidance in favor of the long view. ROP is forecasting 2015 earnings in the $6.75-6.95 range, up from $6.40 per share in 2014.

Barclays reiterated their overweight rating on the stock and raised their price target to $193.00. The point & figure chart is even more optimistic and currently forecasting at $209.00 target.

Shares of ROP hit new highs last week and have managed to hover there in the $175.00 region. The stock looks poised to push higher and we want to buy calls if ROP can trade at $177.75.

Trigger @ $177.75

- Suggested Positions -

Buy the AUG $180 CALL (ROP150821C180) current ask $4.90
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Weekly Chart: