February 24- Nike
Option: March 19 Call, $140 Strike $3.00
Tomorrow am seems to be red, so I will use that as opportunity to buy these options.
Nike has been relatively quiet lately and underbought for a couple months, presenting a nice entry. Last quarter Nike continued to show its retail stardom, and I don't expect their holiday quarter to be any different. Nike is the essence of innovation- they are always forward thinking, delivering best in class clothing, shoes and equipment.
Highlights from Nov 20, 2020 2nd Quarter Earnings, Reported in Dec:
-11.2B in sales, YoY increase of 9% (China revenue increased 24%)
-Grew their digital sales by 84%, globally
-Direct sales increased by 32, accounting for $4.3B in sales
-EPS up to $0.78, 11% increase
-Selling and Admin expense decreased to 3.3B, however, Gross Margin (Revenue-cost of goods sold/ Rev) was reduced, due to increased promotional activity
-Net income came in at 1.3B, impressively a 12% rise
-Cash and Equivalents were 11.8B, higher by more than 8B (during a pandemic year!)
Overall, love this name and will continue to own the stock and buy this option.
Expected to report around 3/18.
Analysts average price target is $165 (23% upside), stock trading -1% today.