How to Trade Nike After Fiscal Q3 2024 Performance

April 14, 2024 11:03 am

While shares in Nike performed well during and after the pandemic, the stock is now down around 50% from its all-time high recorded in November 2021. In fact, its share price has ended lower for the past two consecutive years.  

The sports retailer and apparel company just announced its fiscal third-quarter 2024 earnings report. Learn more about Nike’s performance and what analysts are forecasting for the stock below.

Stock: Nike Inc
Symbol for Invest.MT5 Account: NKE
Date of Idea: 26 March 2024
Time Line: 1 – 6 months
Entry Level: $103.00
Target Level: $130.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Nike Fiscal Q3 2024 Performance

Here are some of the key highlights from the latest fiscal third-quarter 2024 earnings report from Nike: 

  • Earnings per share of 77 cents vs 74 cents expected 
  • Revenue of $12.43 billion vs $12.28 billion 
  • Quarterly net income of $1.17 billion compared with $1.24 billion prior year 
  • North America revenue up to $5.07 billion vs $4.75 billion expected 
  • China revenue of $2.08 billion vs $2.09 billion expected 
  • Europe, the Middle East and Africa revenue down 3% to $3.14 billion and lower than analyst estimates 

In the big picture, Nike beat analyst estimates for earnings per share and revenue. However, most of the beat came from better-than-expected revenues from North America. Its other regions such as China, Europe, the Middle East and Africa struggled in the quarter with lower revenues. On the initial earnings release the stock rose 5% before dropping more than 7% lower.  

While the uneven revenue stream from its global regions is a concern, it was Nike’s guidance for the current quarter and its fiscal 2025 that worried the market. It is expecting growth of just 1% by the fiscal year end. However, margins are expected to rise due to lower ocean freight costs and improved supply chain efficiency.  

The management team stated that consumer discretionary spending on clothing and shoes is down. This is why last year it announced a restructuring plan to reduce costs by $2 billion over the next three years.  

The mixed macro outlook and company results is one reason why more analysts have moved to a hold rating on the stock, as shown below.

Nike Stock Forecast – What do the Analysts Say?

According to analysts polled by TipRanks for an Nike stock forecast in the past 3 months, there are currently 15 buy, 13 hold and 1 sell ratings on the stock. The highest price level for a Nike stock forecast is $130.00 with the lowest price target at $81.00. 

The average price target for a Nike stock forecast is $112.24.

Source: TipRanks, 26 March 2024

An Example Trading Idea for the Nike Stock Price

An example trading idea for the Nike share price could be as follows:  

  • Buy the stock on a break above $103.00 to see if buyers can regain control from its post-earnings price drop. 
  • Target just below the highest analyst price target of $130.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Nike shares:  
  • If target is reached = $270.00 potential profit [($130.00 – $103.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the stock is still down around 50% from its all-time high.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Nike stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Nike Stock in 4 Steps  

With Admirals, you can buy shares with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Nike. Monthly. Date: January 2017 to March 2024, captured on 26 March 2024. Past performance is not a reliable indicator of future results or future performance.

Click on the banner below to trade Nike stock today ▼▼▼ 

Do You See the Nike Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Nike share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

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  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
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