Nike (NYSE:NKE) stock has taken a breather after its record run.
Shares have fallen 4% in the past week, retreating further from its highs set in mid-December.
The stock has rallied 45% in the past six months, buoyed by an athleisure trend that accelerated during the pandemic and an e-commerce strategy that has gained traction.
One expert said that outperformance is just beginning.
"I do think this trend continues. People have changed, consumers have changed and everyone’s working from home. Everyone loves Nike. They’ve done a fantastic job with their e-commerce model that’s put them ahead of the game from a lot of the other competitors in their space."
Digital sales for its Nike brand surged 84% in its fiscal second quarter ended November. The company also beat analysts’ expectations for sales and profit.
A move to $150 is nearly 7% from Friday’s closing and would mark surpass its record high of $147.95.
Nike’s technical setup also supports the long-term bull case, according to Craig Johnson, chief market technician at Piper Sandler.
"The shares have been in this nice upward trending price channel for quite some time," he said in the same interview. Noting the recent dip, he added: "It looks like this is a stock that should be bought at this pullback.
"We continue to think there’s more room to run here for Nike. We do own this name in our model portfolio and it’s one that we continue to like a lot in here," said Johnson.
NKE shares gave back $1.30 to $139.42 early Tuesday.
