It has been a mixed earnings season for retailers with some big beats and some big misses. One issue that came out with a beat is Nike Inc. NKE and its price action makes it the PreMarket Prep Stock Of The Day.
Pre-Earnings Rally: While the S&P 500 index made its low for the recent slide on Feb. 24, Nike did find a bottom until March 14 at $116.75. That marked the lowest level for the issue since September 2020, when it bottomed at $110.21.
On Monday, the issue reached its highest point since making that low when it peaked at $132.14. Its highest close for the rebound was made last Friday at $131.24.
Q3 Beat: After the close on Monday, the company reported quarterly earnings of 87 cents per share, which beat the analyst consensus estimate of 71 cents by 22.54%. The company reported quarterly sales of $10.90 billion, which beat the analyst consensus estimate of $10.62 billion by 2.64%.
Nike Q3 Earnings Highlights: Revenue And EPS Beat, Digital Sales Growth And More
PreMarket Prep Take: When the issue was being covered on the show, it was trading at the $137 area. Co-host Dennis Dick commented, "This is a stock that is loved by a lot of people and when FOMO is kicking in, this is an issue investors will flock to.”
The author of this article focused on the after-hours and premarket price action. Investors were alerted to the persistent seller at the $139 area during both sessions. With the issue trading a few dollars below, he was cited as a potential target during the regular session.
Price Action: After a much higher open ($137.28 versus $130.19), the issue bolted to $139 to the penny and sharply reversed course. Since making that high, many investors are opting to take profits after the better-than-expected earnings report.
As of 3 p.m., it has retreated but has found intraday support ahead of the top of Monday’s range ($132.31), only reaching $133.70. At this time, the issue is attempting to remain in the higher $133 handle.
The discussion on the issue from Tuesday’s show can be found here:
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