) 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.
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
), which reached $82.26.
BROWN SHOE CO (BWS): Free Stock Analysis
DSW INC CL-A (DSW): Free Stock Analysis
NIKE INC-B (NKE): Free Stock Analysis Report
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