Can Nike (NKE) Rebound From Previous Quarter Earnings Challenges?

Market is expecting Nike to report earnings of 84 cents per share (+27.3% YoY) on revenue of $12.9 billion (+0.2% YoY).

Oppenheimer has upgraded the blue chip stock to Outperform (Buy) from Perform (Hold) and reinstated it as a "top mega-cap pick" ahead of its quarterly results. Though there are the internal and external challenges Nike has faced in recent quarters persist, these should be priced into the shares.

Nike is expected to rebound gradually, as efforts on the part of senior leadership to refocus on product innovation and brand-building take hold,". This can be reflected on the technical signal showing that bullish crossover is happening for Nike.

We shall take a look at how Nike would move.

Nike last reported earnings on 21 March 2024 after the market close (AMC). NKE shares declined -6.9% the day following the earnings announcement to close at 93.49. Following its earnings release, 96 days ago, NKE stock has drifted +1.3% higher.

From the time it announced earnings, NKE traded in a range between 88.42 and 98.04. The last price (94.75) is closer to the higher end of range.

Upcoming earnings implied straddle is 7.3%. We might see a different price effect as we are expecting some result from the efforts made by Nike to overcome the challenges in the last two quarter.

Based on technical indicators, MACD is not showing any sign of bullish crossover, and KDJ is actually showing downtrend movement from J value moving down.

But we would need to watch how Nike could be trading today (26 June) to see if market is positive on Nike before its earnings report tomorrow.

We might be seeing some 3.05% decline on Nike after its earnings from the current data, but that could change if Nike earnings could come in very positive.

And investors would be interested to know the progress of how Nike have overcome some of the previous quarters challenges.

NIke is one of the consumer discretionary stocks which could be affected by how the S&P 500 Consumer discretionary sector, which was down by 0.28% last night. We will have to see if this sector could gather a better performance today (26 June 2024).

Appreciate if you could share your thoughts in the comment section whether you think Nike could rebound from its previous earnings price effect?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.