Latest news with #MarketCatalysts
Yahoo
15 hours ago
- Business
- Yahoo
Nike to see 'V-shaped recovery' over next year, analyst says
Nike (NKE) stock continues to surge after the company posted better-than-expected fourth quarter earnings. Randy Konik, Jefferies retail and apparel analyst, joins Market Catalysts to explain why he sees this as a turning point for Nike, with cleaner inventory, a reset strategy, and potential for earnings to rebound. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Nike surging after fourth quarter results came in better than feared. The retailer topping estimates on the top and bottom line, despite seeing sales drop 12% year-over-year, saying this quarter saw the largest financial impact from its turnaround plan. Joining me now, we've got Randy Konik, who is the Jeffries Retail and Apparel Analyst. Randy, good to have you back on the program with us. You have a buy rating, $115 price target on this stock. So, there's got to be a lot of work done between here and there. You see this as an inflection point for Nike, though. Take us into your thesis. Yeah, look, I think what the market under appreciates about this business is, and first and foremost, Nike is the second most ubiquitous brand in the entire world behind Coca-Cola. In addition, Nike competes with only 10 companies in athletic footwear. That's a great position to be in. And not only is it number it's number one in footwear, well, not a lot of competition. It also had self-inflicted wounds and those self-inflicted wounds incurred by prior CEO are now being fixed, fixed with better product, more balanced distribution. And because earnings got cut in half and a lot of these issues were self-conflicted, those earnings can bounce back rather quickly. It's not going to take a quarter, but over the next eight quarters, we think this this V-shape recovery ensues. And that's what makes this stock nearly double from current levels over the next 12 months. So let's take this in pieces because there have been a couple elements of this turnaround strategy, and and I want to start with how they're looking across their partnerships, especially on the retail front. What have you been encouraged by? What would you like to see more of? How are you evaluating that? Look, I think it's as simple as first and foremost, the company's getting back into the retail channel in an enlarging its wholesale distribution. Under the prior CEO, they went away from that. So the the new CEO is doing a good job of rebalancing that distribution. In addition, the company is really doing a good job of talking about being a better partner to the wholesale channel, not just taking, but also giving. So that means co-marketing with the partner, but also means doing a better job of segmenting product for each specific retailer, which I think is a very smart move. Finally, you know, with the uh with the return of going back on Amazon, I think it just helps the company broaden out its customer base. And again, it allows Nike to kind of, you know, because it's ubiquitous brand and people want to buy it everywhere, it allows the the brand to shine through in these different retailers, these different channels. Uh so everyone can get the new product that looks more compelling. There's been a ton of focus around that product and the inventory levels of that product. Has your monitoring what the consumer trends are right now, especially across regions? And I believe it was EMEA that's actually showing the most strength and momentum for them right now. What do they need to see in terms of that inventory and and how they're kind of navigating those shifts internationally to ensure that they've got the right product in the right place at the right time? Look, it's a great question. I think what the company is doing uh now is they're acting with urgency. So inventories ended the quarter uh in and about flat. Now, they did talk about some elevated inventories in particular regions and particular product categories like the lifestyle product, but what they did also say is they're they're doing a good job of getting through that product in a timely manner, such that from an inventory perspective, you should see inventories be very clean within the next couple quarters. Uh which allows for the back half of the fiscal year uh to be set up for a business that goes up against very easy comparisons on top and margin line to show some really meaningful improvement as we go out a couple quarters from now.
Yahoo
5 days ago
- Business
- Yahoo
What Iran's response to the US could look like
Tensions remain high as fears grow over potential retaliation following the US's strikes on Iran. Wesley K. Clark & Associates chairman and CEO General Wesley Clark joins Market Catalysts to outline possible responses from Iran and what escalation could mean for US interests and global oil (CL=F, BZ=F) markets. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. as, you know, someone that has PTSD from 9/11 still, are there things are you concerned about a lone wolf or possible strike back on the American people or American targets overseas? Uh, what are your biggest concerns? Because it seems just too easy that, uh, this is one and done. Well, of course, Iran is going to have to if they've got a structure of their government, they're going to have to strike back. But what are they going to do if they come after us in the United States with terrorist attacks? Boy, that's going to really bring down the world on their shoulders. I they may threaten it. That's one of their last resorts. Easiest thing to do, have the militias harass US bases in the area, maybe lob a few drones or rockets at some US bases, um, and, um, and continue to threaten to close the Strait of Hormuz, but not to do it. They they've got their own problems right now because, um, the attacks that are coming in on Israel are affecting their ability to organize command, control, plan operations. So they've got, um, they're they're they're under the weather right now. They're always cautious about responding. They should be especially cautious now because the hammer is there. Uh, there's plenty of military power to strike them. The real issue here for for the markets is what comes next? What's the objective really? If we get regime change, what does that mean? We're going to have 92 million people in chaos. We're going to have continuing factions fighting for control. Uh, what about those three million barrels a day of oil from Iran? Is that going to be interrupted, destroyed? What does it mean for the neighbors in the region? There's lots of anxiety in the region. Our markets may be shutting it off, but I can promise you people in the region are fully aware of the downside potential here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Currency trading: Difference between forex and currency index tickers
Currency trading is not always easy to understand. Fortunately, Stocks in Translation Host Jared Blikre is here to help. In the video above, Blikre explains the difference between forex and currency index tickers. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here and Stocks in Translation here. With global tensions rising, there's a lot of chatter about the US dollar, which has been the world's reserve currency since just after World War II. And today we're going to look at exactly why currency and foreign exchange tickers can look so strange and what their charts are actually saying. I'm Jared Blikre, host of Stocks in Translation. Now, here's something curious behind me. Check out these two charts from the past five years. Maybe we'll get to that in a second. We have the euro dollar pair whose symbol is EURUSD equals X, there we go. And the US dollar index, that's These are a mouthful. But notice that they're mirror images of each other. The other one moves up, but the other moves down. So, why do these symbols look so different and what's the history here? To answer that, we need to define what the so-called forex market is and take a quick trip back to the 1970s. So, foreign exchange or forex, that is a 24-hour global marketplace for banks, businesses, and traders. They swap one currency for another. It sets the exchange rates affecting your vacation costs, import prices, even your investment returns. And it all started August 15th, 1971, when President Nixon closed the gold window, ending the era where foreign governments could convert dollars into gold. By 1973 on this timeline, this led to the collapse of the post-World War II Bretton Woods agreement. And suddenly, exchange rates, they had been fixed, they were moving quite widely. So in 1976, the Jamaica Accords officially legalized and recognized floating currencies, which had already been trading somewhat freely for years. And in 1979, Europe launched its own monetary system to manage volatility. This led to the formal creation of the euro decades later in 1999. So, those events shaped the modern forex market that we see today. Now, what exactly should you know about forex? First, every currency quote has two sides, the base currency first and the quote currency second. And which one comes first is simply a matter of convention that goes all the way back to the 1970s. Take the euro versus a dollar. Each currency in this pair always has three letters that do not change. So, EUR is a euro and USD is the US dollar. Yahoo Finance also adds an equal sign and an X to the end. That highlights that these are forex pairs. Now the current price of the euro dollar is about 1.15. This means that 1 euro buys 1.15. And bottom line, the euro is just a little bit stronger than the dollar. Also, the smallest increment in forex is just 1/10,000th of a unit, 0.0001. And this market never sleeps during the week. It runs nonstop from Sunday evening all the way to Friday afternoon. And some other fun facts, forex is the biggest market on the planet with an eye-watering 7.5 trillion dollars in daily turnover. Also, it's famous for high leverage. Traders will often borrow 30 to 100 times their money. This means that relatively small daily movements, they can have a huge ripple effect. And when they're big, watch out, because that volatility in currencies, it can quickly spill into the markets we know well, like bonds and stocks. And finally, the US dollar gets most of the action. It's on one side of 88% of all trades. The euro is second, appearing about a third of the time, and the yen is next with about 1/6 of the action. That was forex. Now let's talk about the dollar index. What exactly is an index? The index part is key. And a currency index measures the overall strength of one currency against a weighted basket of others. So there are many. The most famous is the DXY or the so-called Dixie, which you can see in this five-year chart. Its weighting is determined by the euro with nearly 58%. That's why DXY mirrors the US dollar, the euro US dollar forex pair so closely, but upside down though. And here's a fun fact. The DXY basket has not been updated since the 1970s and is based on lightly traded futures contracts, which makes it a bit of an antique. And there are several alternative dollar indices, including some by the Federal Reserve. But despite this, the DXY remains an industry standard and an archaic relic that we still tend to use every day. And that's your currency crash course. Now you know why forex matters and can look so strange even if you never place a single trade. And tune into Stocks in Translation for more jargon-busting deep dives, new episodes on Tuesdays and Thursdays on Yahoo Finance's website or wherever you find your podcasts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Currency trading: Difference between forex and currency index tickers
Currency trading is not always easy to understand. Fortunately, Stocks in Translation Host Jared Blikre is here to help. In the video above, Blikre explains the difference between forex and currency index tickers. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here and Stocks in Translation here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Buy now, pay later loans will soon impact credit scores
Buy now, pay later (BNPL) could come with new credit consequences as FICO (FICO) is set to roll out a new credit score model that includes BNPL data. Freedom Capital Markets chief global strategist Jay Woods sits down with Market Catalysts host Brad Smith to explain how new FICO changes could legitimize BNPL while exposing risks for borrowers and lenders. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
