Nike stock has taken a breather after its report run.
Shares have fallen 4% up to now week, retreating farther from its highs set in mid-December.
The stock has rallied 45% up to now six months, buoyed by an athleisure development that accelerated throughout the pandemic and an e-commerce technique that has gained traction.
Danielle Shay, director of choices at Less complicated Buying and selling, says that outperformance is simply starting.
“I do assume this development continues,” Shay advised CNBC’s “Buying and selling Nation” on Friday. “Individuals have modified, shoppers have modified and everybody’s working from dwelling. Everybody loves Nike. They’ve finished a improbable job with their e-commerce model that is put them forward of the sport from plenty of the opposite rivals of their area.”
Digital gross sales for its Nike model surged 84% in its fiscal second quarter ended November. The corporate additionally beat analysts’ expectations for gross sales and revenue.
“I believe that Nike continues larger,” Shay added. “I believe it would pull again a bit bit farther from the place we’re proper now, however I do assume it is a purchase on this pullback, and I am focusing on $150.”
A transfer to $150 is sort of 7% from Friday’s closing and would mark surpass its report excessive of $147.95.
Nike’s technical setup additionally helps the long-term bull case, based on Craig Johnson, chief market technician at Piper Sandler.
“The shares have been on this good upward trending price channel for fairly a while,” he mentioned in the identical interview. Noting the latest dip, he added: “It seems to be like this can be a stock that ought to be purchased at this pullback.”
“We proceed to assume there’s extra room to run right here for Nike. We do personal this identify in our model portfolio and it is one which we proceed to love loads in right here,” mentioned Johnson.
Disclosure: Shay holds NKE.