Equities weekly forecast: Nike, FedEx & Micron Technology

Nike Q3 earnings

Nike Group will release Q3 earnings on Thursday, March 20. The share price is 4% lower this year and down 28% across the past 12 months. Expectations are for the sportswear and shoe maker to report declining sales and profits.

Forecasts are for EPS to decline to $0.28 on revenue of $11.02 billion for the quarter, down from $12.43 billion the same quarter a year earlier

Attention will also be on the turnaround plan under new CEO Eliott Hill, who took over the role in October. In the previous quarter, results topped estimates, and Hill laid out his vision for improving sales, although there are questions over how long the turnaround could take.

The results come as Nike has increased its marketing and product efforts for women, announcing a collaboration with Kim Kardashian's Skims for a new line of products.

How to trade NKE earnings?

On the weekly chart, Nike has been forming a series of lower lows and lower highs since its July 2021 high of 169. The price is testing support around 70.00, the 2024 low. Should sellers extend the bearish trend and break below 70.00, this opens the door to 57, the March 2020 pandemic low.

Byers would need to rise above 82, the 50 SMA, and 89, the September 2024 high, to expose the falling trendline resistance at 92.

FedEx Q3 Earnings Preview

FedEx will report Q3 earnings on March 20 after the closing bell. The firm is considered a bellwether of US and global economic activity, and the markets will be looking for clues regarding the strength of consumer and corporate demand.

Expectations are for a year-over-year increase in earnings on higher revenues with EPS of $4.59 up 18.9% from the $3.86 posted a year ago. This is up from  EPS of $4.05 in the last reported quarter, beating consensus estimates by 3.9%.

However, revenue in Q2 was disappointing at $22 billion compared to $22.2 billion a year earlier and the $22.09 billion expectations on Wall Street.

In addition to poring over the results, investors will be keen to learn more about the freight business's separation and its progression after the company revealed plans at the end of last year. Furthermore, any clues about share buybacks planned for 2026 will be watched. FedEx has announced $2 billion worth of share buybacks in the first nine months of this financial year and is aiming to purchase an additional $500 million of common stock by the end of the current quarter.

How to trade FDX earnings?

FedEx has gained 10.8% over the past year, lagging behind yes and P500's 24.1% increase during the same timeframe.

After reaching an all-time high of 310 in July last year, the price has been trending lower, falling below its 200 SMA and testing the 240 June low.

Sellers supported by the RSI below 50 will look to remove this support to extend losses towards 230, the February low.

Should this support hold, buyers will look to rise to 267, the February high, ahead of the 200 SMA at 273.

Micron Technology Q2 earnings

Chip maker Micron Technology is set to post its quarterly earnings after the market closes on Thursday, March 20th. Analysts expect Micron technologies to report EPS of $1.43 on revenue of $7.93 billion for the quarter.  

 In its previous quarterly earnings in December, the semiconductor manufacturer posted EPS of $1.79, beating consensus estimates of $1.60. It reported a Net margin of 13.34%. Revenues came in at $8.71 billion during the quarter, in line with expectations and well up from $4.73 billion the year before. This strong growth comes owing to strong growth from the data centre business, whose revenue rose to 50% of its business for the first time.

The company will likely continue to do well this year as companies such as Microsoft and Amazon are seen accelerating their AI spending. Estimates point to companies spending over $320 billion this year. The challenge is that there are signs an AI bubble could be starting to burst with stocks such as NVIDIA and AMD down this year

The ongoing trade war between the US and China could also impact Micron's results. Historically, this firm has generated around 25% of its sales from Chinese companies, but this has changed as some companies are forced to end their trading relationships with Chinese companies.

How to trade MU earnings?

After briefly spiking to an all-time high of 157 in June, the price has eased lower and trades in a holding pattern capped by 114 on the upside and 85 on the downside. The RSI is neutral.

This lends itself to a breakout trade.  Should buyers rise above 114, the next level of resistance could be around 130, ahead of 157.

Meanwhile, sellers could look to take out support at 85, to open the door to 78, the 2024 low, which is also the 200 SMA. Below here, sellers could gain momentum towards 64.