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Are Nike and FedEx Stock Buys Ahead of Earnings?

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On today’s episode of Full Court Finance at Zacks, we dive into the market’s recent turnaround that has the S&P 500 and the Dow trading at highs. The episode then explores FedEx (FDX - Free Report) and Nike (NKE - Free Report) ahead of their upcoming earnings releases to see if investors should consider buying either stock.

The Dow closed at new highs last Friday, for its 13th record of 2021. Meanwhile, resurgent tech stocks helped lift the S&P 500 to new heights last Thursday, having erased all of its recent losses. Plus, the Nasdaq now trades about 5.5% below its mid-February highs, after it fell 10% into a correction just a week ago.

The recent comeback highlights the return of the cyclical trade, as Wall Street dives into economically sensitive areas. Investors are also looking to reopening stocks as the vaccine distribution ramps up, with the Biden administration pushing to make it available to every adult by May 1.

These efforts, along with the recent passage of the latest $1.9 trillion fiscal stimulus bill could further supercharge what is projected to be a major economic comeback in 2021, with economists projecting around 6% GDP growth. This is where the inflation worries and discussions pop up.

Wall Street stepped in last week to buy some of the high-flyers that had been trounced, including Tesla (TSLA - Free Report) , Nvidia (NVDA - Free Report) , and others. As the market rebounds, investors are likely starting to wonder if the inflation worries were a tad overdone. Even though bond yields have climbed, they remain ultra-low by historical standards. And the overall earnings picture continues to improve (also read: Previewing The Q1 2021 Earnings Season).

FedEx and Nike are both set to report their quarterly earnings on Thursday, March 18. The two giants from very different industries could help provide a better picture of what’s to come. And both stocks might be worth considering as longer-term buys.

FedEx is a global shipping powerhouse that’s cut ties with Amazon (AMZN - Free Report) and has beefed up its e-commerce business to help expand in the booming industry. Meanwhile, Nike has continued to lead the athletic apparel charge, as Adidas (ADDYY - Free Report) , Lululemon (LULU - Free Report) , and smaller upstart brands all capitalize on changing habits.

More Stock News: This Is Bigger than the iPhone!

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