Let’s Talk About Nike, Inc.
The company has reported outstanding earnings with a revenue growth of 14% on Tuesday, March, 22.
Yet their stocks fell.
Why did it happen?
Well, there are two reasons.
Market expected bigger revenue growth.
This way (NYSE: NKE) fell 6.08%.
Nike is a pretty strong company.
Here’s what Brent Mille of seekingalpha has to say about their products and marketing
And here’s what their revenue growth says:
It is obvious that Nike has growth capacity.
And markets agree with it.
Nasdaq community offers 8 guru methodologies of stock analysis. Let us see, what ratings does (NYSE: NKE) get.
71% rating based on Benjamin Graham's methodology.
64% rating based on Validea Momentum methodology.
80% rating based on James O'Shaughnessy's methodology.
52% rating based on Motley Fool's methodology.
0% rating based on Peter Lynch's methodology.
57% rating based on David Dreman's methodology.
69% rating based on Martin Zweig's methodology.
50% rating based on Kenneth Fisher's methodology.
Stocks are considered strong, when the rating is above 50%.
Let’s get technical.
Nike stocks are showing DOWN trend on daily timeframe.
Moving average and MACD are showing a short signal both on daily and weekly timeframes.
Considering all the facts one can say that there will be growth after decline
How to trade Nike in this situation?
Well, there are two options.
Both me and Brent Mille consider (NYSE: NKE) overvalued at the moment. So, there should be drop to ca $55. Keeping this in mind, you can:
Go short on them right now with a “take profit” order at $55
Or submit a pending buy order on this level.
I’ve decided to set both. This way I can make $870 profit, considering investment of $1,000 and leverage of 1:10 from the first trade and at least 2 times more from the second one.
Check their stocks.
|Check out Nike|