The stock market is poised for another thrilling earnings session with major players like FedEx (FDX) and Nike (NKE). The two companies are set to report their quarterly earnings, with FedEx trading near its all-time high and Nike struggling to find its footing.
FedEx has been a bright spot in the earnings calendar, with shares gapping up sharply as the company implements cost-cutting initiatives. However, the stock may face challenges if expectations are not met. The FactSet consensus is for adjusted profit of $4.02 per share, up 1% year over year, but FedEx’s revenue growth has slowed.
On the other hand, Nike has been a disappointment in recent quarters, with shares gapping down on disappointing earnings. The company faces stiff competition in the footwear market and has seen its margins pressured by global expansion and increased production.
Another stock worth watching is Birkenstock (BIRK), which has seen its share price rally off lows after a solid earnings report. The company’s growth prospects look promising, with fiscal 2025 earnings expected to jump 39%.
Meanwhile, Jabil (JBL) is also in the spotlight, with Goldman Sachs maintaining a buy rating and lifting its price target to 145. However, the stock faces challenges if expectations are not met.
As the options market opens on Thursday, traders can take advantage of these stocks using various strategies. A basic options trading strategy involving call options allows investors to buy a stock at a predetermined price without taking excessive risk.
Stay tuned for further updates and insights from Ken Shreve, our expert analyst.
Source: https://www.investors.com/research/earnings-preview/nike-stock-harsh-downtrend-ahead-of-earnings-new-ceo-aims-for-turnaround