Q2 STOCKS TO BUY

Nike Stock Drops on Rare Earnings Miss

The retailer also issued a disappointing forecast

Deputy Editor
Jun 30, 2023 at 11:29 AM
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Nike Inc (NYSE:NKE) announced its first earnings miss in three years after the close yesterday. The retailer reported fiscal fourth-quarter profits of 66 cents per share, which is just below analysts' anticipated 67 cents per share, though revenue topped estimates. The company issued a disappointing first-quarter outlook as well. No fewer than nine analysts slashed their price targets after the event, though three threw in price-target hikes. 

NKE is down 2.2% at $110.87 at last glance, and earlier dropped as low as $109.80. The stock's 320-day moving average has been keeping a lid on gains this month. Year-to-date, the equity sports a 5.4% deficit. 

So far today, 87,000 calls and 84,000 puts have crossed the tape, which is five times the volume typically seen at this point. The weekly 6/30 113-strike call is the most active contract, with new positions opening there.

It's also worth noting that Nike stock has tended to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 85 out of a possible 100. 

 
 

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