Nike stock: buy or sell
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 setup | Buy point | Stop loss | Risk |
| ATH buy setup | $147.95 | $134.17 | 9.31% |
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
| Brokerage firm | Rating |
|---|---|
| Dec 21st, 2020 | |
| Barclays | Buy |
| BMO Capital Markets | Buy |
| BTIG Research | Neutral |
| Credit Suisse Group | |
| Deutsche Bank Aktiengesellschaft | Buy → |
| Jefferies Financial Group | Buy → Neutral |
| JPMorgan Chase & Co. | |
| Morgan Stanley | Buy |
| Needham & Company LLC | |
| Piper Sandler | Buy |
| Raymond James | Buy |
| Royal Bank of Canada | |
| Smith Barney Citigroup | Neutral |
| Telsey Advisory Group | Buy |
| The Goldman Sachs Group | |
| Wells Fargo & Company | Buy |
| Dec 22nd, 2020 | |
| Argus | |
| DZ Bank | |
| Dec 28th, 2020 | |
| DZ Bank | |
| Jan 4th, 2021 | |
| DZ Bank | |
Nike stock analysis
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
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
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
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
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%.
| Brokerage firm | Price 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 $0.78.
Nike competitors
Nike belongs to the Consumer Cyclical sector and the Footwear & Accessories industry, where it has industry peers.
The following are Nike main competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Nike ($NKE) | $218.9B | Buy | 14 |
| Deckers Outdoor ($DECK) | $8.0B | | 1 |
| Under Armour (UAA) | $7.3B | Buy | 1 |
| Skechers U (SKX) | $5.9B | | 1 |
| Crocs (CROX) | $4.5B | | 6 |
| Steven Madden (SHOO) | $3.1B | Neutral | 0 |
1 In the last 30 days.
Nike performance
To better understand Nike stock performance you must compare its gains with other related stocks in same sector or industry.. For Nike, the benchmark is made against Deckers Outdoor, Under Armour, Skechers U, Crocs and Steven Madden.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Nike ($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 onlyNike 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 date | March 23rd, 2021 |