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What’s the next step for NIKE stocks?

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When will NIKE release first quarter results?

NIKE is expected to release its first quarter results after the US markets close on Thursday, September 23.

NIKE Q1 Results Snapshot: What To Expect From The Results

NIKE continued to gain traction in the last quarter as demand for sportswear remains strong, its push in line with its direct-to-consumer model advances and wholesale revenues have recovered as more physical retailers have reopened their stores.

This is expected to continue to be the case in the first quarter, with sustained consumer spending expected to continue to drive sales up while the focus on full-price sales and leaner inventory should also improve margins.

Analysts expect revenue to reach $ 12.46 billion, from $ 10.59 billion a year earlier, which, if met, would mark a new record performance for the business. Diluted EPS is expected to rise to $ 1.12 from $ 0.95. Notably, NIKE has beaten expectations in seven of the past eight quarters, and several analysts believe it may beat early forecasts again in the first quarter.

Bloomberg figures suggest sales in North America will increase by 17.5%, Greater China by 11%, Asia and Latin America by 27%, and the EMEA region by 12%.

The main concern NIKE will need to address this week is how it is dealing with the driver shortage and supply chain challenges that are currently plaguing the wider economy, especially as the season approaches. key vacation. There are also fears about supplies as cases of the Delta variant increase in China, a key production center for the company, and amid reports of problems in Vietnam where factories have been forced to close in due to the spread of the virus.

NIKE shares have risen more than 36% in the past year after going from strength to strength during the pandemic, although the stock is trading 11% below the last all-time high reached in early August The 33 brokers covering the stock are extremely bullish on NIKE, with an average buy rating and target price of $ 184.83, implying that there is up to 19.8% upside potential from the current price of the action.

What next for the NIKE share price?

Nike’s stock price traded within a relatively narrow range in the first six months of the year, with losses limited to around $ 125 and gains not exceeding $ 147.

In June, following encouraging results, the stock price rebounded north to a record high of $ 175 before falling again.

Price is now trading around 10% off the all-time high, passing the 50 sma but finding support for the 100 sma at $ 152 yesterday.

The RSI has also slipped into oversold territory, suggesting that a period of consolidation or even a rise may be in the cards.

Any significant rally should resume resistance to the downside of the trendline at $ 160 and the 50 sma at $ 165 to bring $ 175 back into play.

On the downside, a move below the 200 sma could open the door to horizontal support of $ 147 and $ 139 before $ 125.

How to trade NIKE shares

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