If Nike's Swoon Snuck Up on You
Nike (NKE) reported earnings of $1.17 per share vs. $1.24 a year earlier, and against a $1.37 estimate for their fiscal fourth quarter (ended May 31). As of 5 p.m. EDT, the stock was down to $86.66 in after-hours trade. That's a not-so-nice $28.15 below the stock's May peak of $114.81.
Could you have predicted the earnings miss? Maybe not. Should you have sold near the top? Absolutely. When shares trade for well above their own normalized valuation, they are always vulnerable to pullbacks -- with or without bad news....274 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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