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3 Stocks to Watch on Wednesday: Nike Inc (NKE), Red Hat Inc (RHT) and Five Below Inc (FIVE)

NKE, RHT and FIVE are all ready to take a hit on Wednesday

U.S. and Europe stocks slightly tumbled early on Tuesday following the terrorist attacks in Brussels, Belgium. However, investors rallied and S&P 500 and Dow Jones Industrial Average ended the day close to breaking even, falling 0.1% and 0.2%, respectively, at day’s end.

3 Stocks to Watch on Wednesday: Nike Inc (NKE), Red Hat Inc (RHT) and Five Below Inc (FIVE)

On an individual stock basis, investors and traders are going to want to keep an eye on the following stocks as the day progresses: Nike Inc (NYSE:NKE), Red Hat Inc (NYSE:RHT) and Five Below Inc (NASDAQ:FIVE).

Here’s what’s feeding the moves in these companies:

Nike Inc (NKE)

Nike looked to open Wednesday pretty weakly following  mixed third-quarter results.

Nike earnings of 55 cents per share were a huge improvement on the year-ago quarter’s 45 cents per share, and ended up soundly beating expectations of 48 cents per share.

Sales, however, seemed to be weighing on Wall Street’s mind. Revenues of $8.03 billion in revenue were up just 8% year-over-year, and actually fell under the analyst bar of $8.2 billion.

Even then, there was some good news on the sales front. For instance, on a currency-neutral basis, revenues were actually up 14% YoY. Additionally, Nike’s athletic footwear and apparel slated for delivery from March 2016 through July 2016 were 12% higher compared to orders in the year-ago quarter.

Still, NKE stock was set to open Wednesday trading off 5%.

Red Hat Inc (RHT)

The open source software provider was also hit in after hours trading, despite the company posting a quarterly earnings report that exceeded expectations.

Red Hat’s fourth quarter included earnings of 52 cents per share, which beat the Wall Street consensus estimate by 5 cents. The company benefited from growing interest in its cloud technology and open source offering.

Additionally, Red Hat reached a milestone in its full-year revenue, becoming the first open source provider to reach $2 billion in revenue for a fiscal year.

RHT projects EPS in the range of $2.22 and $2.26 on revenue of $2.38 billion, topping analysts estimates of $2.19 EPS and $2.36 billion revenue.

All that wasn’t enough to lift sentiment on the stock, however, as shares were set for a 4% decline at Wednesday’s open.

Five Below Inc (FIVE)

Lastly, specialty teen retailer Five Below sank in after-hours trading Tuesday after posting its Q4 results.

Five Below’s shares were heading lower despite some pretty positive results. The company reported better-than-expected earnings at 77 cents per share, ahead of the analyst consensus of 76 cents per share. Quarterly revenue totaled $326.4 million, beating Wall Street expectations by almost $3 million.

What might be weighing on investors was FIVE guidance for fiscal year 2017, as projected EPS of $1.27 to $1.31 per share saw the upper end of the range touch analyst expectations for $1.31.

FIVE stock looks to open Wednesday off 5%.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/03/3-stocks-to-watch-on-wednesday-nike-inc-nke-red-hat-inc-rht-and-five-below-inc-five/.

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