Adidas_analysis
Adidas Soars 8% on Surging Profit & Upgraded GuidanceAdidas ( OTC:ADDYY ), the German sportswear giant, has sent shockwaves through the market with an unexpected surge in first-quarter profits and a bold revision of its full-year guidance. Buoyed by robust sales performance and strategic initiatives, Adidas ( OTC:ADDYY ) has captured investor attention by raising expectations for revenue and operating profit in 2024.
1. Profit Surge and Upgraded Guidance: Adidas' first-quarter profit has witnessed a remarkable year-on-year increase, propelling the company to revise its full-year guidance upwards. With an 8% jump in shares reflecting investor confidence, Adidas ( OTC:ADDYY ) now forecasts a mid-to-high-single-digit growth in currency-neutral revenues for 2024, signaling optimism and resilience in the face of market challenges.
2. Strategic Inventory Management: Adidas' decision to divest its Yeezy inventory following the split with rapper Kanye West has proven to be a strategic masterstroke. Anticipating additional sales of around 200 million euros from the remaining Yeezy inventory, Adidas ( OTC:ADDYY ) has demonstrated agility and foresight in optimizing its product portfolio to drive profitability and shareholder value.
3. Operational Resilience and Growth Momentum: Despite facing headwinds from unfavorable currency effects, Adidas' first-quarter operating profit soared to 336 million euros, showcasing operational resilience and efficient cost management. Analysts anticipate a steadily improving sales trajectory throughout the year, fueled by the momentum of Adidas' core brand and strategic partnerships with marquee sporting events.
4. Brand Momentum and Market Perception: UBS analysts highlight Adidas ( OTC:ADDYY ) as one of the "best earnings momentum stories in the space," underscoring the brand's rapidly accelerating momentum and market appeal. With a packed summer sporting calendar and investments in performance shoes, Adidas ( OTC:ADDYY ) is poised to capitalize on consumer demand and solidify its position as a global sportswear leader.
5. Strategic Partnerships and Product Innovation: Adidas' partnerships with high-profile events like the Olympics, Paralympics, EURO 24, and Copa events further bolster its brand visibility and market penetration. The focus on performance shoes and the resurgence of the Terrace footwear brand signal Adidas' commitment to innovation and meeting evolving consumer preferences.
Technical Outlook
Adidas ( OTC:ADDYY ) stock is riding hard on the bullish train with a positive Relative Strength Index (RSI) of 67.12 indicating bullish momentum. The stock is trading above the 200, 100 & 50- Day Moving Averages respectively.
ADS BUYHi, According to my analysis of Adidas stock, there is a good chance that you will buy or invest in this stock for the long term. The stock is in a very positive condition, going in an upward channel. It also broke the strong resistance at the level of 170. It is expected that the price will return to the same area to retest the rise once again. Good luck everyone
Adidas: How fast are you? 👟Lately, Adidas has made fine progress in the scope of wave 2 in turquoise, moving toward the magenta zone between 157.06€ and 141.72€. Soon, the share should reach this price range and complete the current movement, before turning upwards to develop wave 3 in turquoise above the resistance at 187.78€. However, there is a 32% chance that Adidas could act faster, skipping the magenta zone and climbing above this mark earlier already.
Adidas - Outlook downgrade supports a bearish thesis Adidas is another company confirming what we laid out some time ago - a trouble brewing during the current earning season, supporting our notion about the stock market progressing in the second stage of the downtrend. That being said, the company reported its quarterly earnings, after which the stock fell approximately 10%. The report highlighted deteriorating demand and adjustment of the outlook for the rest of 2022 while also pointing out a build-up in inventories. We expect the same trend to continue among other companies and strengthen during the next earning season concerning Q4 2022. Therefore, we voice a word of caution to investors as this will lead the market slowly but surely into the 3rd stage of the bear market.
Illustration 1.01
Moving averages continue to reflect the bearish conditions on the daily chart of Adidas stock.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term.
Illustration 1.02
The weekly chart of Adidas also shows bearish conditions between two moving averages. However, the price deviated too far from the 20-week SMA, making a case for a short-term bounce toward it.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Entering Adidas for long term holdAdidas is one of the companies which not likely go out of the market anytime soon. We are hitting massive support trend line and we have also touched covid lows. I can only imagine this is beginning of recovery. Yes, we might go lower, but if you think long term you can start inching in positions at this price and average down at the next support if we got there.
This is like a long term hold for a couple of years at the very least.
ADDYY ABC correction, long setupAdidas just broke an uptrend and finished 1-5 Elliot wave. We are waiting for an ABC correction, we should enter for a long position on the C, which should be ~80$ mark, since market created gap there which needs to be filled, also there is a 61.8% fib zone which indicates that market should reverse in that zone.
Entry: 80
Target 140
Invalidation: 70
Ratio: 6
Adidas , Long view The curve for Adidas shares has been upwards since mid-May. At first, it seemed as if buyers were running out of Amo in the area of the € 220 mark, but in the past few days the share has regained momentum. In the meantime, investors have caused the price to rise to EUR 241.10. Until the pre-crisis level of 282.45 euros was reached, however, more than 17 percent is still missing.
At the moment, however, during the past one or two days, investors are primarily interested in positive topics. Because of this sentiment, the stock receives a “hold” rating today. In-depth and automatic analyzes of the communication have shown that lately "buy" signals have been the main focus. This gives Adidas a Buy Signal based on the investor sentiment barometer.
Good Luck .
ADSD @ daily @ closed higher while last 4 trading daysThis is only a trading capability - no recommendation !!!
Buying/Selling or even only watching is always your own responsibility ...
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Best regards :)
Aaron