Nke Stock Forecast, Price Targets And Analysts Predictions

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nike stock analysis

At a price of $100, that would give a price to earnings ratio of 33. Thus, the investment returns investors can expect are around just 3%. Expectations for higher investing returns are based on growth. MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis.

Nike Inc Nke

If Nike stock was still traded at a price of $5.76 on January 2nd, 2003, it had nearly doubled its value by January 3rd, 2005, when its closing price was $11.34. Since 2004, the company began increasing the dividend on an annual basis. Ten years later, on January 5th, 2015, Nike stock price reached $46.75. The growth rate of 312% within a decade tells the outstanding performance of NIKE’s stock in the 21st century.

nike stock analysis

This is reflected in its Accumulation/Distribution Rating of B-. MarketSmith shows 45% of Nike stock is held by funds, with a further 2% being held by banks. However, analysts expect Nike earnings to rebound 64% in fiscal 2021, ending next May, with a 29% gain in fiscal 2022. Analysts have upwardly revised the latter figure, which reflects improving optimism. But the coronavirus’ impact on China’s economy and the NBA season suspension will hurt Nike sales there, although the return of basketball could be a catalyst. The flat base is offering up a ideal entry point of 148.05, MarketSmith analysis shows.

Giant Pension Bought Tesla, Pfizer, And Starbucks Stock It Sold Nike

Nike’s sales and profitability exceeded our estimates as it benefited from strong demand for activewear in its (February-ended) fiscal 2022 third quarter. Given this result and a slight decrease in our long-term tax rate assumption of 14% (we no longer expect a U.S. corporate tax hike), we expect to lift our https://xcritical.com/ $132 per share fair value estimate by a low-single-digit percentage. We view Nike’s shares, up about 6% in post-market trading, as fairly valued. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals.

  • We track the performance of the top 100 financial experts across various large and mid-size financial boutiques.
  • Nike stock – owner’s earnings per shareHowever, this was the past as it has been great.
  • This is most useful for short- to medium-term stock and option traders.
  • Her risk assessment for Nike stock is low, citing its “strong financial and operating metrics.” Moreover, she predicted Nike will rebound faster than other stocks.
  • (0.18%), AKO Capital LLP (0.17%) and California Public Employees Retirement System (0.16%).
  • We do not think the pandemic will have any impact on the power of the brand, the source of our wide moat rating, and think it highlights its e-commerce, which jumped 75% in the quarter.

The Long-Term Technical Ranking is a good gauge of how a stock has traded over the past several months. This is useful for medium to long-term stock and option traders. Gives Nike Inc an overall rank of 50, which is below average. Nike Inc is in the bottom half of stocks based on the fundamental outlook for the stock and an analysis of the stock’s chart.

A rank of 50 means that 50% of stocks appear more favorable to our system. Nike’s income statement also reflected an increase in its earnings per share, which rose by 114% to $2.55 in FY 2019 from $1.19 in FY2018. As such, the company’s board of directors approved an increase to its annual dividend, raising it from 88 cents to 98 cents per share. That translates to an increase from 22 cents to 24.5 cents per quarter for each share.

Is Nike The One Team Lebron Cant Save?

The biggest holder at the moment is index fund giant Vanguard, whose 98.6 million shares represents 7.9% of Nike stock. Donohoe has already made a mark by reshuffling senior management. Former CFO Andy Campion, who had held the role since 2015, has become chief operating officer. This is looking especially prescient given the amount of people, both in the U.S. and around the world, who have been forced to stay at home amid the coronavirus crisis.

We do not update or delete outdated information contained in website materials, and we disclaim any obligation to do so. All website content is the property of NIKE, Inc. and any use, dissemination or republication is prohibited without written consent from NIKE, Inc. Between today and yesterday, no less than six additional analysts cut their price targets on Nike stock.

nike stock analysis

In these cases Nike insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission when buying or selling shares of their own companies. The Nike stock analysis report makes it easy to digest most publicly released information about Nike and get updates on important government artifacts, including earning estimates, SEC corporate filings, and announcements. Nike Stock analysis module also helps to analyze the Nike price relationship with some important fundamental indicators such as market cap and management efficiency.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.08% per year. These returns cover a period from January 1, 1988 through April 4, 2022.

While the impact from coronavirus is far from over, there are encouraging signs. Sports leagues have returned, while analysts say lockdowns have led to a shift toward healthy and active lifestyles. This should benefit Nike, and is reflected in stout earnings estimates from analysts. The IBD Stock Checkup tool Nike stock is well shy of the CAN SLIM benchmark for 25% average growth over the past three quarters, with EPS hit due to the coronavirus pandemic. Over the past three years, EPS declined by an average of 5%.

By using and applying Nike Stock analysis, traders can create a robust methodology for identifying Nike entry and exit points for their positions. When it comes to investing in great businesses, the question is always whether the future will be of resemblance to the past? Unfortunately, each company has a life cycle and that, in the best scenario, a growth company turns from a fast grower into a slow growth cash machine. The only difference is that in 2016, AAPL’s price to earnings ratio was around 10, and not above 30 like it is the case with Nike now. The high valuation is the prime risk for the company as slight changes in the market’s perception on Nike’s future growth prospects could have a high impact on investing returns.

The world famous sportswear brand Nike, Inc. was founded in 1964. Originally the company bore the name Blue Ribbon Sports until changing in 1971. However, it still took some years before Nike, Inc. went public. Its IPO took place on December 2nd, 1980, when over two million shares were issued. Nike stock has been traded under the ticker “NKE” on the NYSE ever since.

Nke:usnew Yorknike Inccompany Info

Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from its use. Nike stock analysis – growth rateWhen we combine the slower growth rate with the exuberant valuation, it creates a high-risk investing situation. Let me use $3 per share as the owner’s earnings which would be a likely level for 2020 without the virus.

Because it is one of the company’s largest growth markets, any detrimental news out of the country could have a big impact on share prices. For example, the stock took a hit after the company shut down or reduced hours in 75% of its stores in Greater China in the third quarter of 2020 because of the coronavirus outbreak. Analysts agree, though, that Nike is poised for continued growth, which should have an impact on the company’s share price. That’s because it is consistently focused on product and marketing innovation. The company remains committed to upgrading its digital footprint through its Nike Direct business, through which the company sells and launches new products online and also makes improvements to its supply chain. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

Wholly-owned NIKE, Inc. subsidiary brands include Converse, which designs, markets… Financial reporting quality relates to the accuracy with which Nike Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows. Nike`s grip on the market comes down nike brand net worth to a simple supply and demand formula, Josh Luber, CEO of sneaker reselling site StockX previously told Jefferies. This mostly applies to the sneaker market, but Nike losing its cool factor in one area of its business can seep into others. Nike, the perennially “cool” brand has a stock price that depends on it.

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nike stock analysis

MarketBeat’s community ratings are surveys of what our community members think about NIKE and other stocks. Vote “Outperform” if you believe NKE will outperform the S&P 500 over the long term. Vote “Underperform” if you believe NKE will underperform the S&P 500 over the long term. These retail stocks are ignoring market weakness making them top candidates to buy. Some analysts believe that the market may have seen peak inflation.

Big Disparities Among The Biggest Stock Funds In The Bear Market

TD Ameritrade displays two types of stock earnings numbers, which are calculated differently and may report different values for the same period. GAAP earnings are the official numbers reported by a company, and non-GAAP earnings are adjusted to be more readable in earnings history and forecasts. One of the most common metrics used when trading options is the Implied Volatility Percentile. IV Percentile is a measure of implied volatility where current implied volatility is compared to the range… IBD Videos Get market updates, educational videos, webinars, and stock analysis.

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Her risk assessment for Nike stock is low, citing its “strong financial and operating metrics.” Moreover, she predicted Nike will rebound faster than other stocks. Nike digital sales are growing rapidly, and management sees acceleration. The company also wants to reshape its presence in the digital marketplace over the long term, so Nike is connecting with customers through both its own digital offerings and through those of its retail partners.

Week Data

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Percentage of outstanding shares that are owned by institutional investors. The measure of a security’s volatility in relation to the S&P 500.

Here are seven stocks to buy if inflation is at, or near, its peak The post 7 Stocks to Buy If You Think Inflation Is Topping Out appe… TipRanks is a comprehensive investing tool that allows private investors and day traders to see the measured performance of anyone who provides financial advice. Nike reported an EPS of $0.87 in its last earnings report, beating expectations of $0.713. Following the earnings report the stock price went up 2.228%. And we deliver an integrated marketplace with compelling retail experiences.

Nike brand digital sales jumped 84% in fiscal Q2, accelerating from a 82% surge in Q1 and 75% growth in fiscal Q4. The company has set a goal to push online sales to 50% of total sales “in the foreseeable future.” On June 14th, 2017, NIKE’s stock price was at $54.66 before falling sharply to $51.10 by the end of the trading day on June 16th. This decline was followed by a rally resulting in a closing price of $60.14 on August 3rd. The stock remained at a high level for some weeks, but fell again sharply to bottom out at $51.07 on October 13th.

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