Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Nike as such a stock due to the following factors:
- NKE has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 18.32 mentions/day.
- NKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $317.8 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on NKE:
NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories, as well as in the provision of services to men, women, and kids worldwide. The stock currently has a dividend yield of 1.3%. NKE has a PE ratio of 25.3. Currently there are 12 analysts that rate Nike a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Nike has been 3.4 million shares per day over the past 30 days. Nike has a market cap of $52.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.65 and a short float of 1.4% with 1.95 days to cover. Shares are down 2.8% year-to-date as of the close of trading on Wednesday.
rates Nike as a
. 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, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.8%. Since the same quarter one year prior, revenues rose by 12.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 2.12, 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.
- 46.40% is the gross profit margin for NIKE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.82% is above that of the industry average.
- You can view the full Nike Ratings Report.