Keep an eye on Nike (NKE).
After pulling back from $174 to $145, the stock appears to have bottomed out, and could refill its bearish gap around $161, near-term. Helping, Goldman Sachs just initiated a buy rating on the stock with a price target of $172.
“The analyst sees a ‘healthy industry backdrop with a company-specific continued focus on innovation to drive growth.’ Nike has room to expand its direct-to-consumer initiative, which should drive higher gross margins over time. In addition, its high cash balance should enable additional investment and capital return to shareholders. Sourcing concerns are transitory and likely priced in following the recent selloff,” notes TheFly.com.
Not only can you buy Nike at a significant discount, you can collect dividends as it recovers.
In August, the company declared a quarterly cash dividend of $0.275 per share payable on October 1, 2021 to shareholders of record at the close of business August 30, 2021.
