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Top Investment Manager’s Pick: Buy Micron, Sell Nike

1 week ago
1 week ago


Fed Rate Cut and FOMC Dot-Plot: A Crucial Week Ahead for Investors

As the markets gear up for another action-packed week, all eyes are on the Federal Reserve’s final monetary policy meeting of 2024. Here are the key highlights and what investors should watch out for:

Market Recap from Last Week

  • US stocks closed mostly lower last week, with the Dow falling by 1.8% and the Nasdaq tacking on around 0.3%.
  • Investors are adjusting to the possibility of the Federal Reserve cutting rates more slowly in the coming year.

    What to Expect This Week

  • The Fed’s official statement is due at 2:00 PM ET on Wednesday, followed by Fed Chair Jerome Powell’s speech at 2:30 PM ET.
  • A 25-basis point rate cut is expected, but the focus will be on the central bank’s guidance on interest rates.
  • Keep an eye on Tuesday’s US retail sales report and Friday’s personal consumption expenditures price index reading for further insights into the economy.

    Earnings to Watch

  • Corporate results are due from Nike, FedEx, Micron Technology, Lennar, General Mills, and Carnival.
  • Despite market fluctuations, one stock is likely to see a surge while another may face downward pressure in the week ahead.

    Stock to Buy: Micron Technology

  • Micron is set to report its fiscal first-quarter results, with strong earnings growth expected.
  • The memory chip maker’s revenue is forecasted to soar by 83.9% annually, driven by robust demand for its AI-related products.
  • Analysts are bullish on Micron, with many revising their earnings estimates upward over the past few months.
  • Micron’s innovative technology and strong market position make it a compelling buy opportunity.

    Stock to Sell: Nike

  • Nike faces challenges with declining revenues and soft consumer demand for athletic wear.
  • Analysts project a significant drop in adjusted earnings per share and revenue for the company.
  • The focus will be on Nike’s turnaround plans under newly reappointed CEO Elliott Hill.
  • Shares have seen a substantial decline in the year-to-date, signaling potential downside risks for investors.

    In summary, the upcoming week is critical for investors, with significant market-moving events and earnings reports on the horizon. Stay informed, make informed decisions, and position your portfolio strategically to navigate the market volatility ahead.

    For more actionable trade ideas and insights, subscribe now to InvestingPro and get 55% off as part of our Cyber Week Extended sale! Stay ahead of the curve and maximize your investment potential. ### Unlocking Investment Opportunities with Nike’s Financial Health Score

    Analysis of Nike’s Financial Health Score

  • Nike has a below-average InvestingPro ‘Financial Health’ score of 2.4 out of 5.0
  • Concerns over weakening gross profit margins and spotty sales growth contribute to this score

    Leveraging InvestingPro for Investment Success

    Whether you’re a novice investor or a seasoned trader, utilizing InvestingPro can unlock a world of investment opportunities while minimizing risks in the challenging market environment.

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  • ProPicks AI: AI-selected stock winners with a proven track record
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    Disclosure and Portfolio Strategy

  • At the time of writing, the author is long on the S&P 500 via the SPDR® S&P 500 ETF (SPY) and the Invesco QQQ Trust ETF (QQQ)
  • The author is also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH)
  • Regular portfolio rebalancing is conducted based on ongoing risk assessments of both the macroeconomic environment and companies’ financials

    Disclaimer

    The views expressed in this article are solely the opinion of the author and should not be considered as investment advice.

    Stay Updated with Market Analysis

    Follow Jesse Cohen on Twitter @JesseCohenInv for more insightful stock market analysis and updates.

    By providing insights into Nike’s financial health score and the benefits of using InvestingPro for investment success, this article aims to empower readers with the knowledge needed to make informed investment decisions. Understanding the financial health of companies like Nike and leveraging tools like InvestingPro can help individuals navigate the complex world of investing, manage risks, and seize profitable opportunities in the market. Additionally, the disclosure and portfolio strategy shared in the article offer valuable insights into the author’s investment approach, highlighting the importance of regular portfolio rebalancing and risk assessment. By following market analysis updates from experts like Jesse Cohen, readers can stay informed and make strategic investment choices to secure their financial future.

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