Two Stocks Are at Make-or-Break Levels for Traders

Earnings season doesn’t officially kick into high gear until next week, but according to New York Stock Exchange insider Jay Woods, there are two early reports that could be particularly influential for traders on Tuesday morning.

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Before the opening bell, Lamb Weston, the frozen potato giant, and Nike, the athletic apparel powerhouse, are set to release their quarterly numbers. Both stocks have lagged the broader market in 2025 Lamb Weston is down about 16% year to date, while Nike has shed roughly 8%. Still, Woods believes these earnings announcements could provide the spark needed to break past key resistance levels on the charts.

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Lamb Weston has had a rough stretch, with shares weighed down for nearly two years. Woods, chief market strategist at Freedom Capital Markets, noted that the stock has rarely managed to climb above its 200-day moving average only six trading days since the start of 2024.

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Yet, there are signs the tide may be turning. In its last earnings release, Lamb Weston surprised to the upside, sending the stock soaring 16% in a single session. The move highlighted just how sensitive the stock can be to positive earnings momentum.

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Heading into this report, the stock was trading near $55.85 as of Monday, placing it just below the crucial 200-day moving average of $56.11. Woods pointed out that this technical level could act as a springboard if results once again exceed expectations. A decisive move above the 200-day line would signal improving sentiment and could set the stage for a sustained recovery.

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Investors will also be watching for commentary on demand trends, pricing power, and supply chain dynamics. In the competitive frozen foods space, these factors could determine whether Lamb Weston can build on a potential breakout or remain stuck in its longer-term slump.

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Nike: A Turnaround Put to the Test

Like Lamb Weston, Nike is also sitting at an inflection point. Woods highlighted the parallels between the two companies, noting that Nike’s stock has also struggled to sustain momentum above its 200-day moving average.

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Nike’s story has been framed as a turnaround under CEO Elliott Hill, with the company working to reinvigorate growth and strengthen its brand momentum globally. Last quarter, the stock gapped higher by 15% following its earnings release, briefly climbing above the 200-day moving average. However, that rally proved short-lived as shares faded back toward the $70 mark.

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As of Monday, Nike shares traded at $69.20, just under the 200-day moving average of $69.96. For Woods, this setup underscores the importance of Tuesday’s results.

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“If this turnaround story is real,” he explained, “then we need to see Nike jump back above the 200-day moving average and continue its newly formed uptrend. If not, there’s a large gap that could drag the stock down toward $60.”

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This makes Nike’s report especially pivotal. Investors will be looking for progress on key fronts such as international growth, digital sales, and product innovation. Any sign that Nike is regaining its stride could fuel a breakout above resistance, while disappointing numbers risk reigniting bearish momentum.

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Why These Reports Matter?

Both Lamb Weston and Nike represent well-known consumer brands that have underperformed in 2025, leaving plenty of room for upside if earnings provide a positive surprise. More importantly, both stocks are sitting just below their 200-day moving averages, a level closely watched by traders as a marker of long-term momentum.

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A breakout above that technical threshold can often attract fresh buying interest, signaling that sentiment has shifted and that a longer-term uptrend may be underway. Conversely, failure to clear resistance could reinforce the bearish case, leaving the stocks vulnerable to further declines.

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For traders, these reports offer a chance to test whether beaten-down names can truly stage comebacks or whether the challenges weighing on them remain entrenched. With earnings season about to ramp up, Lamb Weston and Nike could provide an early preview of how the market reacts to consumer-facing companies navigating uncertain economic conditions.

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