CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

Nike sprinting towards Q2 figures

Nike sets the standard as the Dow Jones’ best performing stock in the last three months.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Nike store
Source: Bloomberg

On Thursday 18 December Nike is due to release its second-quarter figures. The company’s adjusted earnings per share are called lower at 69.9 cents down from 109 cents with sales also lower down to $7.145 billion from $7.982 billion. The company’s pre-tax profits for the quarter are also called lower at $824.32 million off from $1.229 billion.

At the moment, Nike shares have been the best performing in the Dow over the last three months, up just shy of 24% with only Visa close to being comparable. This strong performance goes some way to explaining the institutional opinion of the company with 21 firms rating the company a buy, 11 a hold and none with a sell recommendation.

One word of caution; the average price target is $98.48 and the shares are already trading above this level. Historically December is not a big month for the company and the last three months of the year normally see a tail off in revenue. The more summer-targeted apparel that Nike sells naturally see a tail off at this time of year.

Nike shares opened the year at $78.03 and have now risen to just below the psychological $100 level. However, psychological levels tend to be seen as target rather than resistance by US investors. The divergence away from the 200-day moving average and the move into overbought territory does make it feel a little overcooked. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by analysts