Analyst Sees Attractive Entry Point for Nike Stock

The majority of analysts were bullish coming into today

Deputy Editor
Oct 12, 2021 at 9:34 AM
facebook twitter linkedin

The shares of Nike Inc (NYSE:NKE) are up 1.3% at $152.29 ahead of the opening bell, after Goldman Sachs initiated coverage with a "buy" rating, and a $172 price target. The analyst cited the blue-chip footwear and apparel maker's "powerful brand legacy," excellent growth initiatives, and continued innovation, while noting that a recent post-earnings pullback serves as an intriguing entrance point.

Goldman Sachs is joining an already bullish brokerage bunch, with 19 out of the 22 in coverage recommending a "buy" or better rating. Coming into today, the 12-month consensus price target of $180.69 is an 18.7% premium to current levels.   

Nike stock is seeing attractively-priced premiums as well. The security's Schaeffer's Volatility Index (SVI) of 23% stands higher than just 14% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. What's more, NKE's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 74 out of 100, meaning the shares have tended to exceed option traders' volatility expectations during the past year.

A mid-June bull gap saw Nike stock surge on the charts, eventually attaining an Aug. 6, record high of $174.38. Since then, however, the 20-day moving average has guided NKE lower, though the stock appears to have bounced off a floor at the $145 level. Year-over-year, the equity is up 16.1%. 


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! 



Special Offers from Schaeffer's Trading Partners