Keep an eye on oversold shares of Nike (SYM: NKE).
Not only did it catch support at its 50-day moving average, but it’s also starting to pivot higher from over-extensions on RSI, MACD and Williams’ %R. From its last traded price of $82.45, we’d like to see it initially refill its bearish gap a around $87.50.
It also looks like earnings negativity has been priced into the stock, too.
In its first quarter, the company’s profit of 70 cents was down from 94 cents year over year. However, it was 18 cents better than estimates. Revenue of $11.6 billion, down 10.4% year over year, missed by $50 million. Again, though, it appears this negativity is now priced in.
Helping, analysts at Truist just upgraded NKE to a buy rating with a price target of $97. “The firm notes it has been cautious on Nike since Fall of 2023 and still views a turnaround process as long and uncertain, but adds that it is now ‘more optimistic’ as investor expectations finally seem to accurately reflect this reality,” as reported by TheFly.com.
