19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

YTD movement

Footwear and apparel maker Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 (which ended on February 28) after the market closes on March 21. Nike impressed investors with strong revenue and earnings growth when it announced its fiscal 2019 second-quarter results in December 2018.

As of March 18, Nike stock has risen 18.5% YTD (year-to-date). Nike’s peers Lululemon (LULU), Under Armour (UAA), Skechers (SKX), and Columbia Sportswear (COLM) have risen 18.7%, 26.5%, 44.6%, and 24.9%, respectively, since the start of 2019. Nike and its peers have outperformed the S&P 500 Index, which has risen 13.0% YTD.

Nike Gears Up to Deliver Its Q3 2019 Results

Analysts’ activity

Following Nike’s fiscal 2019 second-quarter results, JPMorgan Chase upgraded its rating on Nike stock to an “overweight” from a “neutral,” and Pivotal Research raised its rating to a “buy” from a “hold.”

On January 9, HSBC raised its rating on the stock to a “buy” from a “hold” and increased its price target to $95 from $92. On the same day, Baird lowered its rating on Nike stock to a “neutral” from an “outperform.”

On January 22, Cowen and Company upgraded its rating to an “outperform” from a “market perform” and increased its price target to $90 from $80.

On February 8, Oppenheimer raised its price target on Nike to $100 from $90. On February 15, UBS increased its price target to $86 from $82. On February 22, UBS again raised its price target to $87 from $86.

On March 14, Wedbush increased its price target on Nike to $96 from $90. On March 18, Canaccord Genuity increased its price target to $96 from $95, and Telsey Advisory increased its price target to $95 from $92. Credit Suisse also raised its price target to $100 from $90. On March 19, JPMorgan Chase raised its price target to $90 from $85.

The 12-month average price target for Nike stock is $89.68, implying a 2.0% potential upside.

Nike has “buy” recommendations from 25 out of 34 analysts, “holds” from eight, and a “sell” from one analyst. The consensus “buy” rating by most of the analysts covering Nike stock is backed by the company’s focus on innovation, strength in its direct-to-consumer business, and improvements in its North American revenue.

We’ll look at analysts’ estimate for Nike’s fiscal 2019 third-quarter revenue and its expected growth factors in the next article.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.71.127