February 24- Nike

 

 

NKE

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.