This is a brilliant business that has a strong focus on its core operations and comes with an outstanding growth profile and a number of earnings kickers that could see further share price appreciation.
It has an incredible history of beating earnings expectations, having beaten consensus EPS (earnings-per-share) every quarter since May 2013 and having only missed revenue expectations once since July 2012. In the last three quarterly earnings reports we have seen the share price rally an average of 9.1% on the day of announcing. Obviously, past performance doesn’t predict the future, but if we think in probabilities then one suspects this trend should continue. Saying that, expectations are far more elevated this time around, and one could even make an argument that we are at peak sentiment towards this name. That should be a consideration as part of every trader’s risk management.