The options market for NKE suggests elevated call activity for July expiries, adding support to the upward bias seen in futures. Current trading near $95.70 keeps the contract well above its 50-day moving average, signaling medium-term strength. Nike (NKE) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items. In comparison to the broader US Luxury industry, Nike underperformed over the past year, where the industry returned a decline, whereas the US market showed positive growth. This underperformance may influence market sentiment and weighs against Nike's potential bounce back. Regarding analyst forecasts, future revenue and earnings expectations could see adjustments depending on the successful execution of Nike's plans to improve gross margins and brand momentum. With a current share price of US$57.54, the analyst consensus target of US$74.92 represents a 23.2% potential upside, suggesting market optimism if initiatives materialize as planned. NKE futures maintained a steady bid in early electronic trading, supported by recent upgrades from major brokers. With RSI approaching 65, momentum traders are debating whether a sustained push above $96 will attract more long interest, especially from hedge funds targeting apparel sector gains.
