Weakness in an opportunity in Nike (SYM: NKE).
The company just cut its revenue forecast, now expecting for FY25 sales to be down mid-single-digits with sales in the first half of the year down by high-single-digits. For Q1, the company is expecting revenue to drop 10% with gross margin in line with its full-year guidance.
Analysts then piled on with downgrades, including JPMorgan, Stifel and Morgan Stanley.
However, at $73.42, it’s safe to say a good deal of chaos has been priced into the stock. It’s also oversold on RSI, MACD and Williams’ %R and could bounce back strong. The last time NKE saw a pullback this severe was in September 2023 before it bounced from about $88.25 back to about $120 by December. We’re again hoping for a similar recovery in oversold NKE shares.
