Nike Inc (NYSE:NKE) stock is bouncing around Tuesday morning as investors await the company’s first-quarter earnings report, scheduled for release after the closing bell. Here’s what investors need to know.
What To Know: Wall Street analysts are expecting a significant drop in earnings per share to 27 cents, down from 70 cents in the same period last year. Revenue is also projected to decline to $11.0 billion from $11.59 billion.
Despite the pessimistic forecast, Nike has a strong track record of surpassing analyst expectations, having beaten earnings estimates in nine of the last ten quarters. Investors will be closely watching for updates on several key areas, including inventory levels, gross margins and the impact of tariffs on the company’s bottom line.
Analysts are also keen to hear about the company’s plans for product innovation and new designs, particularly in the women’s category. Recent analyst ratings have been mixed, with some maintaining a neutral stance while others have raised their price targets.
Benzinga Edge Rankings: Ahead of the report, Benzinga Edge rankings show Nike with a strong Growth score of 61.65, contrasting with low scores for Quality (12.99) and Momentum (24.27).
NKE Price Action: Nike shares were down 0.63% at $69.12 at the time of publication Tuesday, according to Benzinga Pro. Over the past month, Nike has declined about 7.8% versus a 4.1% rise in the S&P 500 and is down roughly 8% year-to-date compared to the index’s 12.6% gain. The stock is trading within its 52-week range of $52.28 to $90.26.
The stock is trading below both the 50-day moving average of $74.81 and the 100-day moving average of $69.94, indicating a bearish trend. The proximity of the current price to the 200-day moving average at $69.92 suggests a critical support level; a breach below this could signal further downside potential. Resistance is likely to be encountered at the 50-day moving average, which may act as a barrier for upward momentum.
Read Also: How To Earn $500 A Month From Nike Stock Ahead Of Q1 Earnings
How To Buy NKE Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Nike’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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