These names are giving “active” investing a whole new meaning.
Nike surged 3 percent Monday, hitting an all-time high on the heels of Piper Jaffray upgrading the stock to overweight from neutral. The move sparked a rally in companies like Lululemon, Foot Locker and Under Armour. Lululemon, for its part, surged to its own all-time high after Deutsche Bank raised its price target on the stock.
Some investors say Nike — the Dow’s top-performing name this year — and the broader space have more room to run.
“I like Nike. I think you let it run here. I think you add to it, add to your winners,” Ari Wald, head of technical analysis at Oppenheimer, said Monday on CNBC’s “Trading Nation.”
“I think the key point here is, relative to the S&P 500, the stock is still retracing underperformance dating back to its 2015 relative peak,” he said, adding its relative performance continues rising.
Others echo Wald’s outlook. Nike looks poised to continue rallying here, said Bill Baruch, president of Blue Line Futures. Another stock to consider in the space is Under Armour, Baruch said Monday on CNBC’s “Trading Nation.”
“Warren Buffett says, ‘Invest in what you know,’ and I know Under Armour,” Baruch said, adding his familiarity with the brand gives him his bullish standpoint, and would stick with that stock here.