Analysts Slam Nike After Earnings; Ford Stock Looks to Drive Higher

By Josh Selway / September 27, 2017 / www.schaeffersresearch.com / Article Link

Dow futures are indicating a higher open ahead of an afternoon speech on tax reform from President Trump. Among specific stocks in focus today are athletic apparel juggernaut Nike Inc (NYSE:NKE), pharmaceutical concern Lannett Company, Inc. (NYSE:LCI), and F-150 manufacturer Ford Motor Company (NYSE:F). Here's a closer look at what's moving shares of NKE, LCI, and F.

Nike Stock Pointed Lower After Earnings

Nike shares are down more than 3% in pre-market trading following the company's fiscal first-quarter earnings report. The company topped bottom-line estimates thanks to strong international sales, but overall revenue lagged due to poor domestic numbers. As such, an analyst at Moody's said they expect "challenges to remain in North America for several more quarters." A number of other brokerage firms weighed in as well, including Susquehanna, which dropped its price target to $47 from $54, territory not seen since February 2015.

This price action would be just more of the same for NKE stock, which has essentially been on the decline since its late-2015 record peak of $68.20. The shares settled yesterday at $53.70, slightly higher on a year-to-date basis. But after falling sharply from a multi-year high in April, short interest has recently ticked higher, rising 7.1% in the last reporting period.

FDA Approval Gives LCI Shares a Boost

Lannett Company announced the Food and Drug Administration (FDA) has approved its Oxycodone and Acetaminophen tablets, resulting in a 2.3% pre-market rise for the stock. LCI shares were last seen trading at $17.70, after hitting a nearly four-year low of $14.90 on Aug. 15. Despite the equity's year-over-year deficit of 37%, options traders have seemingly been betting on an upside move. Lannett Company's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 10.20, which ranks in the 92nd annual percentile. This shows long calls have been initiated at a faster-than-usual pace over long puts.

Ford Stock Tries to Stay Hot with Lyft Collaboration

Ford stock has been on a tear since bottoming at $10.47 last month, last seen at $11.93. This momentum should continue today, too, thanks to news Lyft plans to deploy "thousands" of the company's self-driving carsin 2021. If F shares can parlay this news into extended upside, they could draw positive attention from the brokerage bunch. Just five of 16 covering analysts say to buy the security, and its average 12-month price target of $11.91 sits below its current perch.

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