4. Nike (NKE) sells sports equipment and apparel.
Quarter: Fiscal third-quarter profit more than doubled to $496 million, or $1.01, as revenue grew 6.6% to $4.7 billion. The operating margin extended from 13% to 14%. Nike has $4 billion of cash, equaling a quick ratio of 2.4, and $568 million of debt.
Stock: Nike has returned 32% during the past 12 months, outpacing U.S. indices. It trades at a price-to-projected-earnings ratio of 17 and a price-to-book ratio of 3.8, on par with peers. Its PEG ratio of 0.8 signals a 20% discount to estimated fair value.
Consensus: Of analysts covering Nike, 14, or 64%, advise purchasing its shares and eight recommend holding them. D.A. Davidson values Nike at $94, leaving 26% of potential upside. Robert W. Baird forecasts that the stock will gain 23% to $92.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV