Nike Inc (NYSE:NKE) Started with a Sell Rating at Stock Traders Daily

Stock Traders Daily has initiated shares of Nike Inc (NYSE:NKE) with a sell rating.  Ours is a combined analysis of both fundamental and technical criteria, but one that also incorporates our longer term macroeconomic work, The Investment Rate.

Fundamentally, growth rates are likely to decline for NKE going forward, which makes the 30x multiple levied on shares today look rich, which in turn creates general valuation concerns.

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These valuation concerns exist even in the face of a stock price that has already fallen some.  Still, the declines are causing material adjustments to the positive technicals that had been in place, and those adjustments open the door to additional decline.

When our macroeconomic analysis of the US economy and stock market is factored in, we believe that socks with relatively high valuations, declining growth rates, and deteriorating technicals pose high risks, and investors are better to see than hold.

Technical Summary

Term →Near Mid Long
Bias Neutral Neutral Neutral
P1 58.03 53.09 55.51
P2 59.34 58.57 63.43
P3 60.56 63.66 70.96

Long Term Trading Plans for NKE

March 14, 2016, 9:52 am ET

The technical Summary and associated Trading Plans for NKE listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for NKE. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

NKE - (Long) Support Plan

Buy over 55.51 target 63.43 stop loss @ 55.25.
The technical summary data tells us to buy NKE near 55.51 with an upside target of 63.43. This data also tells us to set a stop loss @ 55.25 to protect against excessive loss in case the stock begins to move against the trade. 55.51 is the first level of support below 60.08 , and by rule, any test of support is a buy signal. In this case, support 55.51 would be being tested, so a buy signal would exist.

NKE - (Short) Resistance Plan

Short under 63.43 target 55.51 stop loss @ 63.69.
The technical summary data is suggesting a short of NKE as it gets near 63.43 with a downside target of 55.51. We should have a stop loss in place at 63.69 though. 63.43 is the first level of resistance above 60.08, and by rule, any test of resistance is a short signal. In this case, if resistance 63.43 is being tested, so a short signal would exist.


NKE Long Term Analysis


NKE EPS Analysis

NKE Dividend Chart

NKE Revenue chart

NKE Growth rate - Quarterly

NKE Growth rate - Yearly

NKE PE chart

NKE PEG chart

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