Nike Trying to Kick the Dow to New High Ahead of Earnings

NEW YORK (TheStreet) -- Nike  (NKE) is one of the leaders of the pack when it comes to the 30 components of the Dow Jones Industrial Average. Last year Nike led the average with a gain of 22.3% compared with the Dow's 7.5% gain.

So far in 2015, the maker of athletic shoes, equipment and apparel is up 10.3% against the Dow's 1.1%. Nike has been a Dow leader since the end of 2013 but hasn't been able to do much to get the Dow back to where it reached an all-time intraday high of $18,351.36 set on May 19. That may change after the company reports earnings after the close Thursday. 

Nike has a strong history of beating earnings estimates, which includes 11 consecutive better-than-expected quarterly results. Analysts expect Nike to earn 84 cents a share and some expect a lower earnings report, and some estimates were slightly lower at 83 cents a share. Jim Cramer cautions investors to be careful about investing in Nike given this pre-earnings strength.

Deutsche Bank raised its earnings estimate to 84 cents a share from 81 cents a share and maintained its buy rating and price target of $115 a share.

Here's the daily chart for Nike.


Courtesy of MetaStock Xenith

Nike is currently trading at $105.60, above its 2015 low of $90.69 set on Feb. 9. The stock traded back and forth around its 200-day simple moving average between April 7 and Aug. 7, 2014, as this average rose from $72.12 to $75.99. The major momentum run-up began with a price gap higher on Sept. 26 following a better-than-expected earnings report on Sept. 25. The stock is now above its 50-day and 200-day simple moving averages at $102.50 and $95.92, respectively.

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