NEW YORK (TheStreet) -- Nike (NKE - Get Report) is the first name in fitness to take advantage of the Apple (AAPL) iPhone 5s' potential. The Nike + Move app uses the 5s' M7 chip, a new addition to the hardware, to track movement affecting the gyroscope, accelerometer and compass even while the app is not in use. Users can then analyze the data, earn "NikeFuel" and compete against friends and Nike + Move users in the vicinity.
The app was introduced a day before pre-orders for the Nike + FuelBand SE begin to ship. FuelBand SE, Nike's latest entrant into the wearable technology space, is more sports-specific than other offerings such as Samsung's Galaxy Gear smartwatch or Google (GOOG) Glass, offering comprehensive activity tracking throughout the day.
The Nike + Move app, available free from the App Store, is expected to generate interest and increase sales by giving users a sampler of the Nike ecosystem.
Nike shares were gaining 0.6% to $76.81 while Apple was slipping 0.2% lower to $525.58.
TheStreet Ratings team rates NIKE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NIKE INC (NKE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NKE's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 7.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NKE's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, NKE has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, NIKE INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 35.43% and other important driving factors, this stock has surged by 65.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NKE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NIKE INC has improved earnings per share by 35.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NIKE INC increased its bottom line by earning $2.70 a share vs. $2.42 a share in the prior year. This year, the market expects an improvement in earnings ($3.05 vs. $2.70).
- You can view the full analysis from the report here: NKE Ratings Report