New Lifetime High For 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.

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 $310.9 million.
  • NKE has traded 413,987 shares today.
  • NKE is trading at a new lifetime high.

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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%. NKE has a PE ratio of 31. Currently there are 13 analysts that rate Nike a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Nike has been 2.7 million shares per day over the past 30 days. Nike has a market cap of $73.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.50 and a short float of 1.1% with 2.36 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Nike as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.08% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 18.7% 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 $2.98 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus $2.98).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 16.0% when compared to the same quarter one year prior, going from $682.00 million to $791.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 7.0%. 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 0.10 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 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.

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