19/07/2022
Nike, Inc.
Ticker NKE
Idea: Long ⬆️
Horizon 2-3 weeks
Target: $134
Potential of the idea: 18%
Entry volume: 4.5%
Stop order: $102
Technical analysis
The paper makes attempts to go out of the downtrend. It is worth opening a position at 4.5% of the portfolio. When placing a stop order at $102, the risk on the portfolio will be 0.45%. The profit/risk ratio is 1.9.
Fundamental factor.
Nike is an American multinational company specializing in athletic apparel and footwear. Almost all of Nike's products are manufactured by third-party contractors outside the U.S. (mostly in Asia). The company owns trademarks, develops product design and owns a network of stores (about 1,150 worldwide), as well as a network of NikeTown shopping centers. Since September 20, 2013, it has been part of the Dow Jones Industrial Average. Nike is the most expensive sports brand in the world according to Forbes. Nike will release its financial statements on Monday, June 27. Analysts expect revenue to rise to $12.09 billion and earnings per share of $0.80. If the report beats analysts' expectations and the outlook for the next quarter is favorable, the market could put the current positive in value. Baird analysts are predicting that Nike's sales in China will be above consensus. Bank of America is also positive and expects Nike to announce a reopening in Asia and prospects for further growth. However, the bank reminded that currency fluctuations work against Nike and may affect forecasts.