🤢 I think I'm going to be sick

Updated: Sep 20, 2020

Hi friends,

After being hit with a correction, the past week has been quite topsy turvy. If you're feeling nauseated, so are we.

On the Friday that just past, we closed looking like this: (9/18/20):

  • Dow Jones Industrial Average: 27,657.42 -244.56 (-.88%)

  • S&P 500: 3,319.47 -37.54 (-1.12%)

  • Nasdaq: 10,793.28 -116.99 (-1.07%)

  • Russell 2000: 1,536.78 -5.82 (-.38%)

 

We're far from re-entering earnings seasons but there's a few announcements coming around the corner (Week of 9/21/20-9/25/20):

9/22/2020:

  • NKE

9/23/2020:

  • CTAS

  • GIS

9/24/2020:

  • ACN

  • COST

  • DRI

  • KMX

A part of the Dow 30, Nike's (NKE) stock is one of those legendary, stable/slow-moving ones. Founded in the 60s, Nike has been a part of many investors' portfolios. It's not exactly a highly volatile investment so if you're into wild swings, this one may not be for you. Either way, this is what we're looking at when we dig into fundamentals:


Last 4 earnings report:

  • 2020 Q2: miss

  • 2020 Q1: miss

  • 2019 Q4: beat

  • 2019 Q3: beat

3-year EBITDA

  • May, 2020: Lower than previous

  • May, 2019: Higher than previous

  • May, 2018: Lower than previous

Technicals:

  • 3-month: ~ +19.01%

  • 1-year: ~ +30.38%

  • 5-year: ~ +106.73% 


Unsurprisingly, Nike is one of those companies negatively impacted by the pandemic. With the last top line revenue at a drop from the previous quarters, the fact that the stock has been consistently increasing shows that investing in stocks really is a reflection of the future state of things, rather than the here and now. Keep a close eye on Nike's earnings this upcoming week. Depending on how you may feel, you may want to sell covered calls to hedge your downside, or just stay inland if you're bullish. You're probably confused by all that. It's okay; our Level 1 Courses should clear things up for you!

Until next time!

- Call to Leap Team


This article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.