Following the better-than-expected results for first-quarter
fiscal 2014, the shares of global sport equipment and apparel
), soared to a new 52-week high of $75.25 on Friday, Sep 27. This
Zacks Rank #3 (Hold) company closed trade at $73.64, representing
a solid return of 4.7% from the closing price of $70.34 on Sep
26, and gained about 43.5% year-to-date.
Average volume of shares traded over the last 3 months stands
at approximately 4,016K. Moreover, the company currently trades
at a forward P/E of 22.9x, an 18.7% premium to the peer group
average of 19.3x.
An impressive record of beating the quarterly earnings
expectations, sustained focus on brand building and operation
expansion initiatives in the emerging markets were the major
drivers behind the stock's strong price appreciation.
Nike's strong portfolio of globally recognized brands - such
as Nike, Converse, Chuck Taylor, Hurley, All Star, One Star, Star
Chevron, and Jack Purcell - and its focus on innovation have
helped strengthen its leadership position.
Nike is striving for opportunities to expand its global
footprint and increase its market share by acquiring new brands,
developing its direct-to-customer business and divesting
underperforming brands. Collectively, these strategies position
the company well among competitors such as Adidas AG and
Brown Shoe Co. Inc.
Moreover, this footwear and athletic apparel retailer has
outperformed the Zacks Consensus Estimate in the trailing 5
quarters with an average beat of 9.9%. In the recently concluded
quarter, it posted a positive earnings surprise of 10.3% and a
37.0% increase in earnings per share, aided by healthy top-line
growth, improved margins, reduced tax rate and lower share count.
Net sales rose 8.0% year over year, driven by the high demand for
the NIKE brand.
Apart from strong fourth-quarter results, Nike's growth
prospects appear promising. We believe that the company's prudent
investment as well as strategic initiatives toward product
innovation and brand building will increase its customer base and
profitability. Going forward, we expect the company's top-line
growth to remain strong, given the rise in future orders.
Other stocks that touched a new 52-week high on Sep 27 are
), which reached $61.17 and $31.86, respectively.
BROWN SHOE CO (BWS): Free Stock Analysis
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NIKE INC-B (NKE): Free Stock Analysis Report
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