Nike Inc. (NKE): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Nike ( NKE) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.8%. By the end of trading, Nike fell $0.75 (-1.2%) to $61.66 on average volume. Throughout the day, 3,545,857 shares of Nike exchanged hands as compared to its average daily volume of 3,827,500 shares. The stock ranged in price between $61.66-$63.14 after having opened the day at $62.20 as compared to the previous trading day's close of $62.41. Other companies within the Consumer Goods sector that declined today were: Leading Brands ( LBIX), down 15.5%, Tesla Motors ( TSLA), down 6.8%, Primo Water ( PRMW), down 5.7% and Rocky Brands ( RCKY), down 5.1%.
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NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessories for men, women, and children worldwide. Nike has a market cap of $45.0 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Nike a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Nike as a buy. 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, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Fuwei Films (Holdings ( FFHL), down 15.4%, Ever-Glory International Group ( EVK), down 9.0%, Bridgford Foods Corporation ( BRID), down 8.5% and Tandy Leather Factory ( TLF), down 6.2%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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