New Lifetime High Reached: Nike (NKE)

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 Nike ( NKE) as a new lifetime high 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 $277.7 million.
  • NKE has traded 2.4 million shares today.
  • NKE is trading at a new lifetime high.

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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 1.2%. NKE has a PE ratio of 25.8. Currently there are 8 analysts that rate Nike a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Nike has been 3.6 million shares per day over the past 30 days. Nike has a market cap of $49.5 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 1.6% with 2.55 days to cover. Shares are up 34.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, 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 ratings report include:
  • NKE's revenue growth has slightly outpaced the industry average of 6.8%. 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 62.57% 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 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.70).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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