The global leader in athletic apparel is a market outperformer that can help investors sleep well at night. Over the trailing five- and 10-year periods, Nike’s (NKE 1.73%) stock has produced stellar returns of 129% and 353%, respectively, handily beating the S&P 500.
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Why is Nike a good stock investment?
The company has focused on protecting its margins which grew 190 basis points to 46.3% in the first nine months of 2022. This is largely a result of Nike increasing its revenue at a greater rate than its cost of sales.
Is Nike a good stock right now?
Key Data Points. Fortunately for potential investors, it looks like the market has not yet priced in Nike’s excellent prospects. The stock is trading at price-to-earnings and price-to-free-cash-flow ratios of about 33 and 35, respectively. Those are right around the average over the past five years.
Is Nike a good growth stock?
The Bottom Line. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. But there is no risk-free stock—not even Nike.
Is Nike a good long term investment?
Nike is a stock you’ll want to buy and hold for the long term. The shares probably won’t gain overnight. But Nike’s earnings prospects look positive. These potentially strong earnings are likely to push the stock higher over time as they did in the past.
Why is Nike a good company?
Nike is good at a lot of things: manufacturing quality shoes; supplying equipment and gear for many professional and collegiate athletic teams; and making a ton of money. But where the company truly excels is its marketing. Nobody does branding quite like Nike.
Is Nike a buy sell or hold?
NIKE has received a consensus rating of Buy. The company’s average rating score is 2.67, and is based on 20 buy ratings, 10 hold ratings, and no sell ratings.
Is Nike stock a buy in 2022?
According to financial projections sourced from S&P Capital IQ, Nike is expected to achieve revenue and normalized EPS CAGRs of +9.9% and +17.7%, respectively for the FY 2022-2025 period. Wall Street also sees NKE generating a 48.6% gross profit margin and a 17.9% EBIT margin in FY 2025.
Why is Nike stock going up?
Yet the stock, which initially rose on the news, gave up its gains following the company’s conference call, during which management said it expects revenue in its current fiscal first quarter to be flat or just slightly up from $12.25 billion in the year-ago period. Consensus calls for sales to climb to $12.34 billion.
Is Nike a good dividend stock?
Based on 31 analyst estimates, Nike is expected to report a full-year EPS of $4.92 for the 2019 fiscal year. Therefore, based on its forward annual dividend of $1.12 and its expected EPS for the 2019 fiscal year, Nike should have a dividend payout ratio of 26.17% and a dividend coverage ratio of 3.82.
What is Nike’s growth strategy?
As with previous years, Nike is honing in on digital and DTC. The company is expecting to reach 50% digital — through its own channels and its partners — by 2025 (from 35% now). DTC is currently nearly 40% of the business, and will be 60% by 2025, Friend said.
What are the best stocks to invest in?
| Best Value Stocks | ||
|---|---|---|
| Price ($) | 12-Month Trailing P/E Ratio | |
| United States Steel Corp. (X) | 23.32 | 1.4 |
| NRG Energy Inc. (NRG) | 38.46 | 2.3 |
| Azenta Inc. (AZTA) | 70.02 | 2.4 |
Is Nike a profitable company?
This graph presents Nike’s gross profit worldwide from 2014 to 2021. In 2021, Nike’s global gross profit amounted to about 20 billion U.S. dollars.
Nike’s gross profit worldwide from 2014 to 2021 (in million U.S. dollars)
| Characteristic | Gross profit in million U.S. dollars |
|---|---|
| 2019 | 17,474 |
| 2018 | 15,956 |
| 2017 | 15,312 |
| 2016 | 14,971 |
Is Nike a risky investment?
Nike Investment Opportunity
22 of all equities and portfolios are less risky than Nike. Compared to the overall equity markets, volatility of historical daily returns of Nike Inc is lower than 22 () of all global equities and portfolios over the last 90 days.
What makes Nike unique?
By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share of the market than any other company. Like most leaders in the market, Nike values the consumer and the importance of providing a quality product.
What is Nike’s biggest problem?
Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.
What is the future of Nike stock?
Based on 27 Wall Street analysts offering 12 month price targets for Nike in the last 3 months. The average price target is $128.87 with a high forecast of $156.00 and a low forecast of $100.00. The average price target represents a 11.03% change from the last price of $116.07.
What is a good price to buy Nike stock?
Nike Inc (NKE) is a leading footwear & accessories business based in the US. It opened the day at $112.79 after a previous close of $114.48. During the day the price has varied from a low of $112.57 to a high of $114.30.
Nike shares at a glance.
| Open | $112.79 |
|---|---|
| Volume more info button | 3,945,246 |
Is Nike stock undervalued?
Nike Inc secures a last-minute Real Value of $149.34 per share. The latest price of the firm is $116.32. At this time, the firm appears to be undervalued.
USD 116.32 0.25 0.22%
| Low | Target Price | High |
|---|---|---|
| 140.00 | 184.65 | 202.00 |
Will Nike go back up?
They’re calling for 6% year-over-year growth for the current fiscal 2022 year, but expect 14% growth in 2023 and 10% in fiscal 2024. Nike’s direct sales could continue growing, and the company’s already brought its brand into the metaverse, which could eventually create potential new opportunities.
How is Nike doing financially 2022?
Nike has revealed revenue of US$46.7 billion for the 2022 financial year, up five per cent year-over-year (YoY). The US sportswear giant’s net income for fiscal 2022 was US$6 billion, a rise of six per cent YoY. Broken down, revenue for the Nike brand was US$44.4 billion, up five per cent YoY.