Retail Giant Staring at 3 Levels of Overhead Resistance

The retailer just declared its quarterly cash dividend

facebook twitter linkedin

Nike, Inc. (NYSE:NKE) is one of the world's leading designers, marketers, and distributors of athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities. NKE also owns Converse, a subsidiary brand focused on athletic lifestyle footwear, apparel, and accessories. At last glance, NKE was seen up 0.9% at $112.23.

On May 5, Nike declared a quarterly cash dividend of $0.305 per share, payable on July 1 to shareholders of record at the close of business on June 6. With this announcement, the athletic wear retailer offers a dividend yield of 1.10% with a forward dividend of $1.22.

Nike stock has dropped 33% in 2022, and just yesterday, May 9, hit a nearly two-year annual low of $110.59. Despite several breakout attempts, overhead resistance has moved in at three marks for NKE, the $140 level, 10-day moving average, and 50-day moving average. This underperformance is far from short-lived, too, with the equity's nine-month deficit standing at -36%.


NKE continues to trade at relatively high forward price-earnings ratio of 25.13. Nike stock also trades at a rich price-sales ratio of 3.95, meaning it is likely that NKE has yet to bottom or fully correct.

In fact, the security looks well overdue for around of downgrades. Heading into today, 17 of the 19 covering brokerage firms still sport "buy" or "strong buy" recommendations on Nike stock.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1