Nike Hits New 52-Week High - Analyst Blog


Shares of Nike Inc. ( NKE ) achieved a new 52-week high of $66.85 on Aug 6, 2013, thereby beating its previous high of $66.61 on Aug 2 and eventually closed trade at $66.54. The average volume of shares traded over the last 3 months was approximately 3,674K. Moreover, the company currently trades at a forward P/E of 22.1x, a 5.6% premium to the peer group average of 20.93x.

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 in strengthening its leadership position. Nike is striving to find 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. Taken together, these strategies position the company strongly among competitors such as Adidas AG and Brown Shoe Co. Inc. ( BWS ).

Moreover, this footwear and athletic apparel retailer has outperformed the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of 9.5%. In the recently concluded quarter, it posted an earnings surprise of 2.7% and a 27.0% increase in earnings per share, aided by healthy top-line growth, improved margins and lower share count. Net sales rose 7.0% year over year, driven by the high demand for 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.

Currently, Nike carries a Zacks Rank #3 (Hold). Another stock that touched a new 52-week high on Aug 6 is DSW Inc. ( DSW ), which reached $82.26.

BROWN SHOE CO (BWS): Free Stock Analysis Report

DSW INC CL-A (DSW): Free Stock Analysis Report

NIKE INC-B (NKE): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BWS , DSW , NKE

More from

Related Videos



Most Active by Volume

  • $15.94 ▲ 0.57%
  • $110.37 ▼ 1.75%
  • $11.94 ▲ 10.66%
  • $24.53 ▲ 0.37%
  • $103.39 ▼ 0.49%
  • $10.13 ▲ 2.32%
  • $29.08 ▲ 1.68%
  • $7.30 ▲ 3.84%
As of 9/3/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by