Nike (NKE) Is Today's Pre-Market Laggard Stock
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Nike as such a stock due to the following factors:
- NKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $472.9 million.
- NKE traded 54,926 shares today in the pre-market hours as of 9:11 AM.
- NKE is down 2.9% today from yesterday's close.
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More details on NKE:
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The stock currently has a dividend yield of 1.1%. NKE has a PE ratio of 26. Currently there are 20 analysts that rate Nike a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Nike has been 9.2 million shares per day over the past 30 days. Nike has a market cap of $96.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.51 and a short float of 1.4% with 1.69 days to cover. Shares are down 10.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Nike as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- NIKE INC has improved earnings per share by 23.6% 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 $1.85 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.85).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 20.1% when compared to the same quarter one year prior, going from $791.00 million to $950.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.4%. 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 0.17 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 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, NIKE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full Nike Ratings Report.
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