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Buy Nike and FedEx Stock Before Earnings as Long-Term Holds?

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On today’s episode of Full Court Finance at Zacks we take a look at Nike (NKE - Free Report) and FedEx (FDX - Free Report) ahead of their upcoming quarterly earnings releases on Thursday, June 24 to see if ether stock might be worth buying. Both the apparel giant and the shipping power boast strong growth outlooks and are trading below their highs.

Stocks surged to start the week of June 21, with all three major U.S. indexes up at least 0.8% on Monday, with the Dow leading the way as it bounces back from its worst week since the end of October. The S&P 500, the Dow, and the Nasdaq all climbed through late afternoon trading on Tuesday, with the tech-heavy index notching a new record as Wall Street bulls shake off inflation fears.  

Investors might be focused on the fact that even if the Fed is forced to raise rates sooner than initially projected, they will remain historically low, extending there is no alternative investing. On top of that, the massive U.S. economic comeback, spurred by the nearly complete reopening of many cities around the country, and the impressive earnings outlook appear to have the bulls in the driver’s seat, despite legitimate overheating and inflation worries (also read: Making Sense of Q2 Earnings Season Expectations).

With this in mind, some of the next major market catalysts amid the low volume summer months will likely be second quarter earnings season, which unofficially kicks off in mid-July with the big banks such as JPMorgan (JPM - Free Report) . Wall Street has to wait even longer for the likes of Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , and other tech stars.

This week will see both Nike and FedEx release results for their fourth quarter fiscal 2021 periods on Thursday, June 24. NKE shares have been on an up and down ride in 2021 and Nike got hit following its last release amid supply chain and shipping setbacks. But Nike’s long-term bull case remains strong despite the rise of Lululemon (LULU - Free Report) and its growth outlook is impressive.

Meanwhile, FedEx is committed to boosting its e-commerce business amid rising global demand. This includes investing in and optimizing its last-mile residential deliveries as it competes against Amazon (AMZN - Free Report) in a world where shipping and delivery have never been more important.

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