Nike stock: buy or sell

NKE stock price: $140.72 -0.41% At close on Jan 15th, 2021

Updated on:
Jan 18th, 2021

2

Nike stock brief

  • Nike stock barely moved -0.41% to close at $140.72 on the stock market today, after 4 consecutive sessions in negative.
  • NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide.

Should I buy Nike stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $NKE stock a buy?

In the current situation of Nike there is just one buy setup eligible:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Nike can break to ATH any time soon, as it only needs to go up a 5.14%. Setup your buy order at $147.95 if you want to trade with this strategy. Arm your stop-loss at $134.17

Buy setupBuy pointStop lossRisk
ATH buy setup$147.95$134.179.31%

Should I sell Nike stock?

How to know when is it time to sell Nike stock?. Trading strategies let us to avoid rash decisions based on our feelings or the buzz that surrounds the market. We like very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups are not intended for shorting Nike stock

As a rule of thumb, you should never keep an investment that results in losses greater than those expected by the time of the buy. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Nike stock?

Currently, Nike stock doesn't match any of our preferred sell setups, so if you hold Nike shares and your operation is in profit probably is not time to sell now

Nike ratings

In the last 30 days, 20 ratings were published for Nike. General sentiment is bullish, with 14 out of 20 posting optimistic forecasts

Nike analysts' ratings - Last 30 days
Brokerage firmRating
Dec 21st, 2020
Barclays Buy
BMO Capital Markets Buy
BTIG Research Neutral
Credit Suisse Group Strong buy
Deutsche Bank Aktiengesellschaft BuyStrong buy
Jefferies Financial Group BuyNeutral
JPMorgan Chase & Co. Strong buy
Morgan Stanley Buy
Needham & Company LLC Strong buy
Piper Sandler Buy
Raymond James Buy
Royal Bank of Canada Strong buy
Smith Barney Citigroup Neutral
Telsey Advisory Group Buy
The Goldman Sachs Group Strong buy
Wells Fargo & Company Buy
Dec 22nd, 2020
Argus Strong buy
DZ Bank Strong sell
Dec 28th, 2020
DZ Bank Strong sell
Jan 4th, 2021
DZ Bank Strong sell

Nike stock analysis

SMAs overview

NKE stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $147.10 (4.53% above)
  • R2: $147.95 (5.14% above)
  • The current support levels are:

  • S1: $138.32 (-1.71% below)
  • S2: $136.08 (-3.30% below)
  • S3: $131.12 (-6.82% below)
  • Bollinger bands

    Since the price surpassed the upper band on January 11, the price has been corrected downwards by 4.34%. The price is moving very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks

    NKE stock Bollinger Bands chart

    Relative strength index

    The RSI dropped below the overbought level of 70 last Tuesday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading last Friday was 49.75. Nike price collapsed a 4.30% since then

    NKE stock RSI chart

    Nike stock price history

    Nike IPO was on Jun 12th, 1989 priced at $0.01 per share1. Since then, NKE stock surged by 1,407,100.00%, with an average of 45,390.32% per year. An investment of thousand dollars at that time would be valued $14,072,000.00 today.

    1: Adjusted price after possible price splits or reverse-splits

    NKE stock price history chart

    Price target for Nike stock

    Nobody knows how much a share will be priced in the future. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.

    The following table shows the price target posted by financial institutions in the last month. Again, these forecasts are not direct recommendations for small investors and should not be trusted blindly.

    Averaging all price targets exposed below, the predicted price for Nike stock is $163.00. Nike closed at $140.72 last Friday, so the target price is expecting a growth by 15.83%.

    Nike stock price predictions
    Brokerage firmPrice target
    Dec 21st, 2020
    Barclays $150.00$174.00
    BMO Capital Markets $134.00$160.00
    BTIG Research $152.00$162.00
    Credit Suisse Group $162.00
    Deutsche Bank Aktiengesellschaft $151.00$161.00
    Jefferies Financial Group $117.00$140.00
    JPMorgan Chase & Co. $170.00
    Morgan Stanley $165.00$176.00
    Needham & Company LLC $149.00$165.00
    Piper Sandler $153.00$168.00
    Raymond James $140.00$155.00
    Royal Bank of Canada $145.00$160.00
    Smith Barney Citigroup $137.00$157.00
    Telsey Advisory Group $155.00$175.00
    The Goldman Sachs Group $164.00
    Wells Fargo & Company $146.00$157.00
    Dec 22nd, 2020
    Argus $140.00$165.00
    DZ Bank Not available
    Dec 28th, 2020
    DZ Bank Not available
    Jan 4th, 2021
    DZ Bank Not available

    Earnings and financials

    In mid-December, NIKE, Inc. ($NKE) reported adjusted EPS for that strongly surpassed Market expectations. Quarterly EPS was $0.78 per share vs the estimates of $0.62. This quarterly report means an earnings surprise of 25.81%. Estimated revenue was $10.6 billion but Nike slightly enhanced by 6.47%, reporting $11.2 billion.

    This compares to Earnings of $0.70 per share same quarter last year, so current EPS is an improvement of 11.43%. Looking at turnover, figures grew a 8.88% compared to $103.3B same quarter a year ago.

    Nike ($NKE) will host the quarterly earnings call next March. Wall Street expects of $0.75, compared to Q2 that was $0.78.

    Nike competitors

    Nike belongs to the Consumer Cyclical sector and the Footwear & Accessories industry, where it has industry peers.

    The following are Nike main competitors:

    Nike competitors
    CompanyMarket capRatingBullish ratings1
    Nike ($NKE) $218.9B Buy 14
    Deckers Outdoor ($DECK) $8.0B Strong buy 1
    Under Armour (UAA) $7.3B Buy 1
    Skechers U (SKX) $5.9B Strong buy 1
    Crocs (CROX) $4.5B Strong buy 6
    Steven Madden (SHOO) $3.1B Neutral 0

    1 In the last 30 days.

    Nike performance

    To better understand Nike stock performance you must compare its gains with other related stocks in same sector or industry.. For Nike, the benchmark is made against Deckers Outdoor, Under Armour, Skechers U, Crocs and Steven Madden.

    NKE performance compared
    Company1m3m6m
    Nike ($NKE) 1.20% 8.90% 48.00%
    Deckers Outdoor ($DECK) 5.90% 24.50% 62.90%
    Under Armour (UAA) 2.30% 38.90% 78.10%
    Skechers U (SKX) 1.90% 11.70% 30.20%
    Crocs (CROX) 15.00% 45.80% 116.80%
    Steven Madden (SHOO) 6.40% 57.30% 62.40%

    Important note:
    The opinions given in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have any knowledge of the particular scenarios of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for learning purposes only

    Nike summary

    Friday, January 15th, 2021
    Open$140.56
    Close$140.72
    Day range$139.88 - $142.38
    Previous close$141.3
    Session gain-0.41%
    Average true range$3.23
    50d mov avg$136.91
    100d mov avg$129.28
    200d mov avg$112.11
    Earnings dateMarch 23rd, 2021

    Frequently asked questions

    What is Nike stock symbol?

    NIKE, Inc. is a public company trading in the US stock market with the NKE symbol

    Is Nike stock a buy or sell?

    Nike received 20 ratings in the last 30 days: 14 bullish, 3 bearish and 3 neutral.

    Will NKE go up?

    Nike had different price forecasts published by analysts in the last 30 days setting the target price to $163.00. That is a 15.83% than the last price ($140.72).