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Take Your Position: Nike

How are traders gaming Nike ahead of earnings on Tuesday after the bell? What must you know?

Despite some pockets of strength in retail, Nike will probably say its sales remained sluggish in its first quarter.

That’s largely because Nike’s largest market is the U.S., where shoppers are still keeping a lid on discretionary spending.

However Marie Driscoll, a retail analyst with Standard & Poor's Equity Research has a ‘Buy” on the stock. Despite Nike’s big presence here at home, Driscoll feels overseas sales should not be discounted especially with a weaker U.S. dollar promising to provide a tailwind.

And she says the company's "global superbrand status" will help it grow after the economy recovers.

So, what’s the trade?

I’m anticipating they will meet expectations, says Citi analyst Kate McShane. However what the Street is looking to hear about is the futures number. I expect down 5% futures. If they beat that number the stocks should be up.

Valuations look fair to me, counsels Guy Adami. But if there’s an inventory build I think the stock could get whacked. I’d just wait and see.


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Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls

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