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Nike is scheduled to report its third-quarter earnings on March 22. Analysts, on average, anticipate earnings of $1.61 a share on revenue of $5.81 billion.
"Sportscan data and retailer commentary (we believe unit growth has continued with no resistance to price increases at retail) indicates that Nike's futures should remain strong, supported by: (1) price increases that began at retail in December that should continue to support NKE's futures thru 1H12, (2) continued strength in lightweight and technical Running led by Free and AirMax, (3) expected uptick in Basketball supported by the return of the NBA season, (4) continued strength in Performance Apparel supported by Nike Pro Combat and the women's Tempo Short, (5) clean Athletic retailer inventory levels, (6) continued Int'l strength led by China, Central/Eastern Europe, and Emerging Markets (with the 2012 London Olympics as a potential catalyst), and (6) new product innovations, including: Nike Fly-Knit, expansion of Lunar technology, and Nike+ (for Bball and Training)," Bank of America Merrill Lynch analysts wrote in a report Monday.
Shares of Nike hit a 52-week high Monday of $112.50. The stock's 52-week low of $69.43 was set on March 22, 2011.
Nike has an estimated price-to-earnings ratio for next year of 19.2 times; the average for footwear companies is 14.29. For comparison, both
Steve Madden(SHOO) and
Crocs(CROX) have lower forward P/Es of 11.05 and 11.61, respectively.
Sixteen of the 23 analysts who cover Nike rated it buy. Six analysts gave the stock a hold rating and one rated it sell.
TheStreet Ratings gives Nike a A+ grade with a buy rating and
$127.89 price target. The stock has risen 16.46% year to date.