Nike (#NIKE) weekly special report based On 1 Lot Calculation:
GLOBAL SPORTSWEAR MARKETS:
- GLOBAL SPORTSWEAR MARKET SHARE: Nike’s sportswear revenue makes around 90% of their total annual revenue. Nike holds 43.7% of the global sportswear market, followed by Adidas (23.7%), Puma (7.6%), Under Armour (5.6%) and etc.
- MARKET POTENTIAL: THE MARKET IS EXPECTED TO GROW FROM $160.61 BILLION IN 2020 TO $267.61 BILLION IN 2028. This would mark an increase of around 65% or around 8% per annum on average.
THE COMPANY:
- Nike is a US company, which is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. It maintains a market capitalization of $176.27 billion.
- EVENT (CONFIRMED: JUNE 29, AFTERMARKET): Q4 EARNINGS REPORT. The company is expected to report quarterly revenue figure of $12.558 billion, accompanied by Earnings Per Share of $0.660. Nike has beat earnings expectations 7 times of 8 last quarter, and beat revenue expectations 7 time of 8 last quarters.
- NIKE RE-ESTABLISHES PARTNERSHIPS WITH WHOLESALERS, WHICH COULD FACILITATE REVENUE GROWTH: Nike has opted to re-establish business relationships with large wholesalers, with the company expecting the move to increase product sales as a result.
- NIKE MOST FAVORITE SPORTS SHOE BRAND IN THE US, WITH SENTIMENT IMPROVING IN CHINA ACCORDING TO CITIGROUP SURVEY: Nike has been named consumers most favorite shoe brand in the United States according to a survey conducted by Citigroup, with 40% of respondents favoring the brand. In China, Nike was considered to be the most likely shoe brand to be bought by consumers, with 18% of consumers favoring the company. Adidas had 16%, while Under Armour had 5%. Nike’s edge in branding could play a critical role in improving sales and increasing company revenue.
- CHINA’S ECONOMIC RECOVERY COULD SPARK STRONG SALES FOR NIKE, WITH 16% OF NIKE’S REVENUE BEING GENERATED IN CHINA: Nike could increase both revenues and profits, with a large portion of company revenues coming from China. Given that Nike is the most popular sports shoe brand in China, demand for Nike’s shoes are expected to rise sharply as the Chinese economy recovers and consumers spend.
PRICE ACTION:
- PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 44% FROM ITS ALL- TIME HIGH OF $178.49 (October, 2021). The stock had fallen to its lowest rate since 2020 to $98.91 (June, 2022). Nike was last trading around $112, and If a full recovery follows to recent all- time highs, the stock could see an upside of around 59.4%.However , the price could decline further.
- ANALYSTS OPINIONS: Jefferies forecasts $160. JPMorgan forecasts $152 a share. Barclays forecasts $154. Goldman Sachs forecasts $148.
#NIKE, June 15, 2023
Current Price:112
|
Nike |
Weekly |
|
Trend direction |
|
|
178 |
|
|
140 |
|
|
125 |
|
|
100 |
|
|
90 |
|
|
85 |
Example of calculation based on weekly trend direction for 1 Lot1
|
NIKE |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
66,000.00 |
28,000.00 |
13,000.00 |
-12,000.00 |
-22,000.00 |
-27,000.00 |
|
Profit or loss in €2 |
60,941.83 |
25,854.11 |
12,003.69 |
-11,080.33 |
-20,313.94 |
-24,930.75 |
|
Profit or loss in £2 |
52,297.94 |
22,187.00 |
10,301.11 |
-9,508.72 |
-17,432.65 |
-21,394.61 |
|
Profit or loss in C$2 |
87,957.87 |
37,315.46 |
17,325.04 |
-15,992.34 |
-29,319.29 |
-35,982.77 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 09:50 (GMT+1) 15/06/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail