Another Oversold Company Pops On Mixed Earnings: How To Profit From This Pattern
Portfolio Pulse from David Pinsen
Nike, Inc. (NYSE:NKE) and Stitch Fix, Inc. (NASDAQ: SFIX) were mentioned in an article discussing the use of the Relative Strength Index (RSI) to identify oversold stocks. Nike, which had an RSI of less than 20, indicating it was oversold, reported mixed earnings, beating on earnings but missing on revenue. Despite the mixed report, the stock spiked nearly 8% after hours. The article suggests that another oversold company with stronger fundamentals than Nike is likely to experience a similar bounce on slightly-better-than-expected earnings.
September 29, 2023 | 4:49 pm
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Nike's stock spiked nearly 8% after hours despite reporting mixed earnings. The stock was identified as oversold with an RSI of less than 20.
Nike's stock was oversold, and despite mixed earnings, the stock price spiked. This indicates that the market had priced in worse results, and the actual results were better than expected, leading to a price increase.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Stitch Fix was mentioned in the context of the use of the Relative Strength Index (RSI) to avoid a losing trade.
Stitch Fix was mentioned as an example of how the RSI can be used to avoid losing trades. However, no specific impact on the company's stock was discussed in the article.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50