Zacks.com featured highlights include NIKE and Super Micro

For Immediate ReleaseChicago, IL – November 25, 2024 – Stocks in this week’s article are NIKE NKE and Super Micro Computer SMCI.Are These Beaten-Down Stocks Worth a Look? SMCI, NKEThe performance of a few stocks over the last few months has left a sour taste in investors’ mouths, with popular stocks such as NIKE and Super Micro Computer unable to gain any meaningful traction.What’s been impacting shares? Let’s take a closer look at each.SMCI vs. Hindenburg ResearchSMCI shares have been decimated since making their all-time high in mid-March, a stark turnaround after an enormous run to begin the year. Shares faced pressure following a short report from Hindenburg Research accusing the company of accounting manipulation.The company is a total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, fully explaining the buzz around the stock in 2024. The company’s reported sales have shot higher, penciling in triple-digit percentage year-over-year growth rates in each of its last three quarters.SMCI has had an interesting history, with the recent short report not the first time the company has been accused of fraud. In 2018, SMCI was temporarily delisted for failing to file financial statements, and by 2020, was charged $17.5 million by the SEC for “widespread accounting violations.”The company delayed the filing of its 10-K annual report back in August following the short report, bringing about further scrutiny. However, SMCI recently announced that it’s found another auditor, trying to regain listing compliance.The news perked shares up a bit, now well above their $17.25 per share 2024 low. It’s critical to note here that shorts have piled into the stock since the report, with the current 18% short interest percentage reflecting a five-year high.While the recent climb is inspiring, there’s undoubtedly been some short-squeezing.Overall, too many questions and concerns surround the company currently to confidently state whether the recent plunge is a buyable dip. However, if SMCI’s 10-K clears the hurdles and no more questions arise, it’s reasonable to expect the stock will take off again.NIKE Fails to Win Over ConsumersNIKE shares faced considerable pressure following the release of its latest quarterly results due to an inability to capture consumers’ wants. Concerning headline figures in the release, EPS fell 25% year-over-year alongside a 10% decline in sales.The performance on headline numbers jumps out, with the company’s top line primarily remaining stagnant and showing little growth over recent years.Sales among the NIKE brand declined 10% year-over-year, with declines seen across all geographies. Wholesales revenues also fell 8%, NIKE Direct revenues fell 13%, and Converse revenues fell 15% year-over-year. Overall, the company’s brand and product offerings haven’t resonated with consumers over recent periods.Analysts downwardly revised their earnings expectations across the board following the release, landing the stock into an unfavorable Zacks Rank #4 (Sell). The negative outlook here isn’t supportive of bullish price action, with the company’s inability to capture consumers’ wants remaining a thorn in the side.Bottom LineSeveral popular stocks – Super Micro Computer and NIKE – have faced negative price action over recent months, with each widely underperforming.Concerning SMCI, the picture remains a bit too cloudy, though a newly-appointed auditor has perked shares back up modestly. It seems like a wait-and-see type of situation for the stock, with just too much unknown out there for investors to take a confident stance on.NKE’s struggles have primarily been attributed to an inability to capture consumers’ wants, with its offerings not attracting consumers over recent periods. However, a newly-appointed CEO remains positive that the company can turn things around, but does realize it will take some time. The stock’s current Zacks Rank #4 (Sell) ranking alludes to near-term share weakness.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >> For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/commentary/2373658/are-these-beaten-down-stocks-worth-a-look-smci-nkeJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks