Repricing Nike Inc (NYSE:NKE) for Fairer Valuation

Shares of Nike Inc (NYSE:NKE) have been under pressure as the stock has come under scrutiny for losing business to Under Armour Inc (NYSE:UA).  They say it was all due to Stephan Curry, but Basketball Season has been over for a while, and Wall Street forgets fast. 

From a valuation standpoint NKE is likely to look more expensive as this year progresses, but by the end of next year NKE is likely to be back on par with fair value if price remains the same.  There's the catch though; in order for it to be back at fair value price would need o remain the same.

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The stock has recently breached a resistance level, and that's a positive near term indicator, but it is barely above that level at this time and the risks of a reversal below that level would open the door to repricing back to fairer valuation levels and stated support.  Monitor converted support and update this NKE report periodically for changes.

Technical Summary

Term →Near Mid Long
Bias Strong Neutral Neutral
P1 57.57 54.41 49.98
P2 58.93 57.40 54.75
P3 60.17 60.27 59.30

Long Term Trading Plans for NKE

August 25, 2016, 9:34 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 59.30 target n/a stop loss @ 59.04.
The technical summary data tells us to buy NKE near 59.30, but there is no current upside target from the summary table. In this case we should wait until either an update to the summary table has been made (which usually happens at the beginning of every trading day), or until the position has been stopped. The data does tell us to set a stop loss 59.04 to protect against excessive loss in case the stock begins to move against the trade. 59.30 is the first level of support below 60, and by rule, any test of support is a buy signal. In this case, if support 59.30 is being tested, a buy signal would exist.

NKE - (Short) Resistance Plan

There are no current resistance levels from the summary table, and therefore there are no Short resistance Plans which tell us to short upon tests of resistance. Resistance levels have broken higher and unless the stock reverses lower and below support levels again short positions look risky.

NKE Long Term Analysis

NKE Dividend Chart

NKE PE chart

NKE PEG chart