SBH - Rapid Returns With Sally Beauty Holdings Run House Money After Q1

2024-02-01 11:29:35 ET

Summary

• Sally Beauty Holdings, Inc. Q1 earnings beat expectations with strong sales figures and a smaller decline in comparable sales than anticipated.
• Margins were mixed.
• The company reaffirmed its guidance for the future, with expectations of maintaining margins above 50% and flat sales compared to the previous fiscal year.
• Still cheap overall, but watch leverage.
• Use the rapid-return gains to fund a house position.

Sally Beauty Holdings, Inc. (SBH) is a stock we have traded a number of times, with our last trade shared in November of 2023 when we ran the stock from the ~$8 level to our target of over $11. Traders who followed our suggested trade, which was clearly outlined with entries and stops , netted anywhere from 30-45% gains depending on your exact entries. If you have not sold, now is the perfect time to back out your initial investment, along with 30% of the profit, and let the rest of the profit run forever and ever with a so-called "house position."...

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