Nike Stock Surged as It Led the Dow as Investors Wait for Earnings Next Week

Nike Stock (NYSE:NKE)

Late in Mondays morning trading, Nike stock was the best-performing stock in the Dow Jones Industrial Average. In response to last weeks decline in consumer discretionary companies, Nike stock price rose by 2%.

On September 29, the athletic clothing giant will release the following major earnings report from the consumer sector.

UBS predicted ahead of Nike stock (NYSE:NKE) results in a report that the company will not increase its FY23 forecast owing to global macro headwinds, persistent supply chain issues, and the foreign exchange (FX) backdrop. The company, however, maintains its bullish outlook on the Buy-rated stock.

With the help of its Consumer Direct Acceleration approach, we anticipate Nikes continued success in China. In light of this, we are optimistic about Nikes future growth, Jay Sole, a famous analyst.

As an interesting side note, Nike stock has beaten earnings per share forecasts for eight consecutive quarters.

On Morgan Stanleys quantitative screen for dividend stocks to own and avoid earlier today, Nike (NYSE:NKE) fell on the own side.

After attending Nikes shareholder meeting last week, UBS reaffirmed its optimistic stance on Nike stock (NYSE:NKE).

According to analyst Jay Sole, Nike discussed its Consumer Direct Acceleration strategy, new innovations, the companys Chinese business, and supply chain difficulties, all of which are important to the ongoing investor arguments about the stock.

Nikes unwavering belief in its consumer-direct strategy was the events most important takeaway.

Since investors have been questioning whether or not Nikes de-emphasis on some wholesale customers is the right path forward, we believe this is beneficial for the company. Even though macro factors may pressure Nike stock in the short term, we believe Nike stock will outperform the market over the next month.

Company leadership believes the market will eventually acknowledge Nikes (NYSE:NKE) CDA strategy is successful and that the company has long-term EPS power over the current consensus mark of $3.77 for FY23. UBS has a Buy rating and a price target of $156 on Nike (NYSE:NKE), representing a 37% upside potential for the stock. Early Monday trade saw a 2.02% increase for Nike (NYSE:NKE).

Featured Image- Megapixl @ Hupeng

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Author: Shariq Khan
Market Jar Media Inc.
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