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3 stocks to watch this week: Nike, Micron Technology, Payshex

  • Nike continues to face supply chain disruptions and tough COVID restrictions in China, its second largest market

  • Micron’s fourth-quarter sales are expected to be at or below the lower end of previous guidance as customers destock unused chips.

  • Paychex results provide insight into small business health through payroll data

Global economic growth and the risk of stubbornly high inflation continue to be key stock market focuses this week, showing little sign of a reversal after a brutal selling spell to close out the summer.

New signs of a slowdown in the global economy hit all types of assets last week, with renewed selling in both stock and bond markets. fell to year-to-year lows, surged, and surged in the short term.

The US Federal Reserve hiked 75 basis points on Wednesday, but still its .

Here are three stocks we’re keeping an eye on in this volatile market environment. All stocks will announce their latest earnings soon.

1. Nike

Sportswear giant Nike (NYSE:) will report its first-quarter 2023 financial results after the market close on Thursday, September 29. On average, analysts expect the sportswear giant to make his $0.92 profit on his $12.29 billion in sales.

Nike earnings forecast

Nike earnings forecast

Source: InvestingPro+

Last quarter, Nike’s quarterly sales were broadly flat as the world’s largest sportswear company continued to face supply chain disruptions and stringent COVID restrictions in its second-largest market, China.

Management said it is optimistic about the current financial year as production remains above pre-pandemic levels and demand remains strong in North America and Europe. They forecast stronger revenue growth in the year that began June 1, but said rising transportation costs would hurt short-term profits.

Nike shares, which have fallen more than 40% this year, closed at $97.02 on Friday.

2. Micron technology

Chipmaker Micron Technology (NASDAQ:) is set to report fourth-quarter earnings for its fiscal year 2022 after the close on Thursday. This storage his chip maker is estimated to have earned $1.38 per share on sales of $6.81 billion.

Micron earnings forecast

Micron earnings forecast

Source: InvestingPro+

Micron, one of the top U.S. makers of memory chips, said last month that demand for its products had fallen sharply and sales would not meet previous forecasts.

The company’s fourth-quarter sales are expected to be at or below the lower end of previous guidance as customers destock unused chips. Following similar warnings from other manufacturers such as Nvidia (NASDAQ:) and Intel (NASDAQ:), Micron said in a regulatory filing that it will experience “substantial and successive declines in revenue and margins.” says.

Micron shares closed at $50.10 on Friday, down about 46% for the full year, below the benchmark (SOX), which has lost 39% over the same period.

3. Peishex

Investors will also be on the lookout for the latest quarter from Paychex Inc (NASDAQ:) due to be released on Wednesday, Sept. 28, before the market opens. The Rochester, New York-based payroll processing and human resources firm is expected to report earnings of $0.9697 per share on sales of $1.18 billion.

With 710,000 business clients across the US and Northern Europe, Paychex provides deep insight into small business health, employment and wage trends, and sectoral impact.

Paychex Stock Performance Over the Last Decade

Paychex Stock Performance Over the Last Decade

Source: InvestingPro+

Small business workers continue to benefit from wage increases, with average hourly wage growth reaching 5.18% in August, in line with the record set in May 2022, according to the latest Paychex report. .

The stock closed at $115.02 on Friday, down about 15% for the year. Despite this year’s weakness, PAYX is still up more than 50% over the past two years, recovering strongly from the pandemic-induced slump.

Disclosure: The author does not own any stock in the companies mentioned in this article.


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