Earnings Beat, Analyst Upgrades Send NKE Shares Sprinting

J.P. Morgan upgraded the blue-chip stock to "overweight" from "neutral"

Digital Content Manager
Dec 21, 2018 at 10:33 AM
facebook X logo linkedin

Shares of Nike Inc (NYSE:NKE) are up nearly 9% at $73.48 in early trading, after the company announced its fiscal second-quarter earnings results last night. The Dow component reported strong online sales in North America, as well as quarterly revenue and profit that beat analyst expectations. J.P. Morgan Securities and Pivotal Research have already raised their ratings on the footwear giant, too -- with the former lifting NKE to "overweight" from "neutral," and the latter raising its rating to "buy" from "hold."

NKE shares have pulled back recently, moving in step with the broader market sell-off. The shoe stock is down about 17% from its September all-time high of $86.00, but sports a year-to-date gain of 17.5% -- comfortably surpassing the roughly 6% losses racked up by the Dow and S&P 500 Index (SPX) for 2018 to date. In fact, with just over a week to go until the year is over, NKE stands out as the No. 4 top-performing Dow component of 2018.

In accordance with this standout price action, J.P. Morgan and Pivotal aren't the only analysts taking a bullish stance on NKE. Of the 23 brokerage firms following the stock, 14 give it a "buy" or better rating. What's more, the 12-month consensus price target of $86.79 implies expected upside of 18.1% to current levels. 

Short interest on NKE rose 14.7% in the most recent reporting period, suggesting some bears think the stock has reached a top. However, it was the equity's now near-the-money December 75 call that saw the biggest open interest increase in the 10 trading days leading up to earnings, per Trade-Alert, with 2,629 contracts added at this just-overhead strike since Dec. 10.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI