Nike (NKE) blew away EPS estimates and the stock is up. Just don’t do it. (June 29, 2017)
I want to look at Nike ( NYSE:NKE ) today, because Nike ( NYSE:NKE ) blew away earnings. They just did it, they beat their earnings estimates by 20 percent. The market was expecting 50 cents, they got 60 cents a share. And so what’s up with the stock? Well, it is up nicely after hours.
Lets take a look here, Here we can see how this thing traded after hours (5-minute chart), the last trade here is 54.95, so it is flopping all over the place. But here is the thing, they beat their estimates by 20 percent. It is a Dow ( INDEXDJX:.DJI ) component and you can see what has happened with the Dow ( INDEXDJX:.DJI ), still in a range. We will probably see a little bit of a rebound tomorrow in the Dow ( INDEXDJX:.DJI ), just because that is what seems to happen in this range-bound market.
What I am suggesting is, don’t be a dope and buy Nike ( NYSE:NKE ) at the open, seriously. It is right up here at resistance. It is up a little bit, it is not up hugely but we will see what happens after the conference call. The stock is up 3 some percent. In this kind of market, with tomorrow being Friday before what is effectively a 4-day weekend; the market is open half a day on Monday, then we have the 4th of July. There are a lot of sellers right up here. I just don’t see any buyers that are going to be rushing in to buy this stock before a 4-day weekend, when it is gapping up, when you can see what has actually already happened to the Financials ( NYSEARCA:XLF ).
Janet Yellen and the gang there approved everybody’s capital plan. JPMorgan ( NYSE:JPM ) was up nicely. Bank of America ( NYSE:BAC ), Wells Fargo ( NYSE:WFC ), even closed relative to the open, higher; ( OTCMKTS:GOSY ), ( NYSE:GS ), Morgan Stanley ( NYSE:MS ). So all of these things are up really strongly, but they are down off the open. The Banking Index ( INDEXDJX:DJUSBK ), gapped up. It still closed almost 2 percent, but down off the open.
With Nike ( NYSE:NKE ), this is a stock that I would not really want to be buying anyway; for the simple reason that, seriously, there is no reason to be buying it. It is not trending. We don’t know whether it is going higher or lower or not. It is in a range here, between 50.00 and 55.00 I guess, 10 percent range. But seriously, how are you going to make money on this? They pay a dividend of 1.35 percent. What I am saying is, if you want Nike ( NYSE:NKE ) go to Zappos and buy some shoes, that is where I get mine, but don’t be buying this thing tomorrow.