Nike ( NKE , quote ) is taking full advantage of Olympic hype, and began showing off their summer athletic gear yesterday. The U.S. basketball team's "Nike Hyper Elite Uniform" was unveiled via Twitter , with Nike proudly announcing it was made of "96% recycled polyester."
There's a reason for the hype. A recent report showed Nike outperforms its competitors during Olympic years, which means the stock should do better in 2012 than Under Armour ( UA , quote ) or Deckers Outdoor ( DECK , quote ). This is due to the intense focus on athletic gear during the Olympics.
2012 is already off to a great start for Nike, as the stock is up by more than 9%. Sales rose 18% to $5.7 billion last quarter, and the company's net profit margin is 8.18%. The company also declared a quarterly dividend of $0.36 per share on February 16. The price-earnings ratio is 22.60, but is expected to fall to around 16 in 2012. Return on equity is at 19.06%.
Now trading around $105 per share, Nike has very strong support from the professional investor community. Institutions own over 83% of the shares of Nike, which is very bullish. The short float, currently 1.10%, is another demonstration of how strongly the professional investor community feels about Nike's stock price rising.
Of course, the Olympics aren't everything for Nike. The company introduced "Linsanity" shirts at Foot Locker last week.
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