|Bid||143.84 x 1200|
|Ask||143.92 x 900|
|Day's Range||141.51 - 144.10|
|52 Week Range||77.97 - 164.79|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||50.49|
|Earnings Date||Mar 27, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||162.89|
It's been a turbulent year for Nike (NYSE:NKE) stock after the firm found itself in the spotlight following a polarizing ad campaign. However, after a high-profile sneaker malfunction failed to drag Nike stock lower in February, it looks like the firm is back on solid footing.Now many are wondering if Nike stock will climb further or if they should wait for another pullback before buying shares. * 15 Stocks That May Be Hurt by This Year's Big IPOs Sneaker BlowoutSource: Shutterstock In February, college basketball player Zion Williamson was forced to leave the court during a game after his Nike sneaker came apart. The incident initially took Nike stock marginally lower, but investors kept a level head and NKE stock made it through the week relatively unscathed. InvestorPlace - Stock Market News, Stock Advice & Trading TipsMany were expecting Nike stock to suffer a significant pullback following the sneaker incident, particularly since the stock market has been extremely jittery recently. However, traders kept a level head regarding the incident, and NKE stock did not dip meaningfully. On the bright side, the fact that Nike stock did not suffer a major selloff suggests the jittery market could be starting to settle down. On the other hand, investors didn't get the opportunity to buy NKE stock on a dip, which begs the question; Should investors buy Nike stock right now? Premium PricesPart of the reason investors want to own Nike stock is the fact that, despite multiple challenges over the past decade, NKE has maintained its place as top dog in the athletic-wear industry. Nike has managed to position itself as a premium brand, giving NKE pricing power and allowing it to grow its apparel and footwear businesses throughout the world. The firm's large size and huge geographic reach have been a security blanket for investors because these advantages will prevent the company from being flattened by a slowdown in a single category or market. NKE Is Emphasizing WomenMoving forward, NKE is making a big bet on the women's athletic-wear market by supporting 14 national teams in the FIFA Women's World Cup over the summer. Nike is designing new team uniforms, and plans to unveil a new line of innovative womenswear inspired by the World Cup apparel. In addition to marketing clothing inspired by the Nike-sponsored World Cup apparel, NKE is also planning to unveil a high-tech-sports bra this summer. The firm's upcoming ad campaign will focus on women and feature female athletes, including tennis star Serena Williams. Why NKE Has to Focus on WomenNike's decision to focus on womenswear is no accident; the firm has been under scrutiny recently after several of its top executives left the company, due to issues with its corporate culture. In a New York Times article, current and former employees alleged that the firm has issues with sexism and gender discrimination. Those allegations cast the company in an unflattering light.Rumors about sexism at NKE are bad for its business, especially considering that women drive between 70% and 80% of overall consumer purchasing. That's because, in addition to making their own purchases, women also influence the purchases of others in their household. Essentially, if consumer-product makers don't appeal to women, they're sunk. The Valuation of Nike StockCompared to its peers like Under Armour (NYSE:UAA) and Lululemon (NASDAQ:LULU), Nike stock is relatively cheap, trading at 27.5 times analysts' consensus 2019 profit estimate. Of course, Nike's growth isn't expected to be as strong as that of number of its smaller rivals, but Nike stock does have a 1% dividend yield. The Bottom Line on Nike StockAs athletic retailers go, Nike stock isn't a bad bet; NKE appears to have a stable future, especially now that the market's jitters are calming.If you own Nike stock already, I wouldn't rush to sell it. However, I wouldn't rush to buy NKE stock, either. The bottom line is that retail is a low-margin, fickle business that's heavily dependent on the economy.Unless NKE stock drops significantly, I'd avoid it simply because there are better picks out there in much more promising industries. I'd consider buying Nike stock if bad news takes the shares significantly lower, but until then, it doesn't offer enough upside to make it worth buying. As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post Nike Stock Is Back on Solid Ground, But Is It Worth Buying? appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Skechers U.S.A., NIKE, Lululemon Athletica, Foot Locker and Columbia Sportswear
lululemon athletica inc. today announced that its financial results for the fourth quarter and full year fiscal 2018 will be released Wednesday, March 27, 2019. The company will host a conference call at 4:30 p.m.
My InvestorPlace colleague Dana Blankenhorn recently wrote about the death of retail stocks. His conclusion was simple. Only those retailers who are saving people time and/or money will survive. End of story. Whether you're brick-and-mortar, online only, or omnichannel, consumers are no longer interested in a leisurely stroll at the mall. They want to get in and get out. Even better if they never have to step foot in one ever again. InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, I'm simplifying Dana's conclusions. He does mention several old school retailers who're doing well including Kohl's (NYSE:KSS) and Target (NYSE:TGT), but if you work in retail and are looking for a happy ending, Dana's not the person to perk you up. I don't see retail in quite the same light. Sure, stores are still closing, but it's my belief that everything happens for a reason. In this case, retailers opened too many stores, and landlords willy-nilly took on their leases with no thought about the long-term health of their malls. * The 10 Best Stocks to Buy for the Bull Market's Anniversary Across the globe, there continue to be stories of retail stocks winning in 2019 and beyond. These are my best bets. Tractor Supply (TSCO)Any time I read a story about this Tennesse-based lifestyle retailer, I'm tickled pink. I haven't written about Tractor Supply (NASDAQ:TSCO) much in recent years -- I recommended TSCO stock in March 2015 shortly after it was added to the S&P 500 -- so when I saw Market Watch contributor Tonya Garcia's recent story about the company, I just had to put it on my list. As Garcia states, Tractor Supply serves consumers looking for the rural lifestyle. The weekend warrior if you will. "We sell everything else but the tractor. Anything for an authentic rural lifestyle," Mary Winn Pilkington, vice president of investor relations and PR at Tractor Supply, told Marketwatch. "We like to say that our team members not only know our customers names, we know their animals names."The beauty of Tractor Supply is that almost everything it sells you can buy elsewhere. However, by going to TSCO, you're avoiding multiple stops. That's one of its biggest advantages. The other is a loyalty program 11-million strong that generates half its annual revenue. Should the economy go in the tank, Tractor Supply is a retail stock that won't be nearly as vulnerable to shifting consumer sentiment. Lululemon (LULU)Although I didn't pick Lululemon (NASDAQ:LULU) in InvestorPlace's 10 Best Stocks for 2019 -- that honor goes to Canada Goose (NYSE:GOOS) which I discuss below -- I kind of wish I had. I got my wife a LULU gift card for our wedding anniversary in February. We recently stopped in at the only Lululemon store currently open in Halifax; it was packed on a Saturday afternoon. So busy, in fact, that we decided to leave because we couldn't any service. Now don't misinterpret what I'm saying. Would I have liked to have gotten better service? Sure. But if you know anyone who's worked in retail for a long time, sometimes a store gets so busy, service standards go out the window. I've been in plenty of LULU stores and know it generally brings good service to the table. I've been recommending LULU stock for a number of years because its apparel for both women and men is outstanding. So too are its same-store-sales growth and profit margins. It also doesn't hurt that analysts like it. "Lululemon has an enviable competitive position with a powerful combination of highly productive stores, aspirational proprietary product, a healthy e-commerce channel, and the potential to still more than double revenue as the concept continues to expand around the globe," analysts from William Blair wrote. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 I couldn't agree more. Canada Goose (GOOS)Although I picked Canada Goose as the best stock for 2019, I personally wouldn't own it given I disagree with its treatment of coyotes and geese. Recently, Bill Maher, the host of HBO's hit show, Real Time, had some not-so-kind words for the company. "New rule: No more d**ches. I mean the hipster d**ches who piss away $1,000 on a Canada Goose parka and the hipsterazzi who max out their credit cards to look like them," Maher said. He went on to describe how coyotes and geese are mistreated in the name of commerce. To be fair, Canada Goose maintains that PETA misrepresents the truth and has for some time. Suffice to say, it's an ongoing debate. However, just because I disagree with the company's choice of materials, doesn't mean I can't defend its business model. From a purely business perspective, its sales growth, profit margins, and perfect balance between wholesale, brick-and-mortar, and e-commerce makes it a very competitive retailer. CEO Dani Reiss is a billionaire as a result of the company's success. If he and all of the other Canada Goose employees can sleep at night, who am I to doubt the veracity of its claims. Best Buy (BBY)MarketWatch contributor Jeff Reeves recently published an article that counters the idea that brick-and-mortar retail is dead. Best Buy (NYSE:BBY) and the next two stocks that follow are three of Jeff's ideas that I also believe make sense. The Best Buy of today is nothing like the struggling electronics retailer CEO Hubert Joly took over in 2012. In six years, it's figured out how to utilize its overly large real estate footprint, to battle Amazon (NASDAQ:BBY) in the e-commerce arena, something no one could have imagined it could do when Joly came on board. It's one of the biggest success stories in 21st century retail. On February 27, Best Buy announced adjusted earnings per share in the fourth quarter of $2.72, 16 cents higher than the consensus estimate. Equally as impressive, analysts expected same-store-sales growth of 1.8% in the quarter. It delivered 3%, well ahead of expectations. To celebrate the solid year, Best Buy also announced it was increasing its quarterly dividend by 11% to $0.50 a share. Paying $2 on an annual basis, BBY stock yields a healthy 3.0%. In fiscal 2020, Best Buy expects earnings per share as high as $5.65 a share, 6% higher than the past year. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio As long as Joly is in the top job, all is well at Best Buy. Bed, Bath & Beyond (BBBY)Although Best Buy and Bed, Bath & Beyond's (NASDAQ:BBBY) stock tickers are very similar, the state of their businesses, not to mention their respective valuations, are entirely different. As Reeves suggested, BBBY is a value play, trading at 8.5x forward earnings and 0.2 times sales. By comparison, BBY is trading at 12.1x forward earnings and 0.4 times sales. That's a big difference when you consider that its stock is up 35% year to date through March 7.Before we get too excited, it's important to remember that Bed, Bath & Beyond's business has been in decline for a couple of years. A better-than-expected Q3 2018 report in January helps, but when you've been experiencing declining same-store sales for several quarters, that's not going to get BBBY's stock price back into the $80s where it traded in 2015. On the plus side, BBBY finished the third quarter with $1 billion in cash and short-term investments, double the amount a year earlier. In the first nine months of 2018, Bed, Bath & Beyond's free cash flow was $408 million, 79% higher than in the same period last year. I could think of worse things to do than getting paid $0.64 annually in dividends (4.1% yield) while you wait for BBBY stock to revert to its historical norms. It's not a slam dunk mind you, but if you're a value investor, it's still reasonably cheap. Five Below (FIVE)After three consecutive years with annual total returns of 20% or more, discount retailer Five Below (NASDAQ:FIVE) appears to be taking a breather so far in 2019. I first jumped on the Five Below bandwagon in April 2017 arguing that its $5 or less concept was very attractive to teens and pre-teen customers. As a result, it would deliver strong returns for shareholders over the next decade. I still feel this way. On March 7, Oppenheimer initiated coverage of the company with an "outperform" rating. "It operates a unique and defensible small-store format and enjoys significant opportunity for further, outsized unit expansion, for the foreseeable future," Oppenheimer analysts stated in a note to clients. "Improving brand recognition and a superior merchandising acumen position FIVE to capture share as other, less well-positioned operators falter… In our view, investors are apt to continue to pay up for industry-leading sales and EPS growth prospects…" * 15 Growth Stocks to Buy Under 15x Earnings Oh, and case you're wondering about the quality of management, CEO Joel Anderson used to be the CEO of Walmart's (NYSE:WMT) online division before joining Five Below in 2014. LVMH (LVMUY)Unless you live in Europe, you might not have heard of Bernard Arnault, CEO of LVMH (OTCMKTS:LVMUY), the company behind Christian Dior, Louis Vuitton, Glenmorangie, Veuve Clicquot, Guerlain, TAG Heuer, DFS, and Sephora. On March 7, Arnault moved into third place on the Bloomberg Billionaires Index with a net worth of $83.1 billion, surpassing Warren Buffett.Arnault got started in luxury goods in 1984, buying the bankrupt company that owned Christian Dior. Selling all of that company's assets (except for Dior), he piled that money into buying a majority stake in LVMH. The rest is history. In February, rumors started to circulate that LVMH was interested in acquiring Pernod Ricard (OTCMKTS:PDRDY), the French-based spirits company, whose brands include Chivas Regal, Absolute, Havana Club, and Jameson. While the Pernod-Ricard brands aren't nearly as high end as LVMH's, a possible deal in partnership with Diageo (NYSE:DEO) could allow it to buy back the 34% Diageo holds in LVMH's drinks business.With LVMH and Five Below in your portfolio, you'll cover the entire spectrum of consumer taste. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post 7 Retail Stocks Winning in 2019 and Beyond appeared first on InvestorPlace.
With Americans being more confident, things have been looking up for athletic apparel stocks. In fact, athletic apparel category seems more like a consumer lifestyle trend rather than just a cyclical fashion trend.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how Lululemon Athletica Inc.'s (NASDAQ:LULU)Read More...
The Zacks Analyst Blog Highlights: Jazz Pharmaceuticals, Lululemon Athletica, ABIOMED and DexCom
Levi Strauss set terms Monday for its upcoming IPO as denim shows early signs that it's regaining favor among American consumers
At the beginning of the year, I put together a list of seven dark horse stocks that I felt were ready to surprise Wall Street in 2019 and stage huge rallies. One of my favorite picks on that list was Skechers (NYSE:SKX), the underappreciated and undervalued athletic footwear stock that seemed ready for a big 2019 surge, as favorable fundamentals converged on a hugely discounted valuation. * 10 Tech Stocks to Buy Now for 2025 Source: Shutterstock That's already happened. Year to date, SKX stock is up more than 40% on the back of strong holiday numbers and a healthy guide, which, together, implied that the good about Skechers is getting better and that the bad is turning around. Up 40% in just over two months, SKX stock may appear to out over its skis here and it may be -- in the near term. But, in the medium- to long-term, this stock will only head higher.Why? Because it is still an underappreciated and undervalued athletic footwear stock that will continue to benefit from favorable fundamentals converging on a discounted valuation. So long as this dynamic remains in play, SKX stock will continue to rally. By my math, that dynamic will remain in play until the stock reaches $40.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs such, buying here in the low $30's isn't too late. A good portion of the 2019 SKX rally hasn't happened yet. The Consumer Backdrop Is HealthyImportantly, the global consumer backdrop is healthy enough to support continued positive revenue growth at Skechers.Specifically, the U.S. economy appears to be stabilizing and consumer confidence is stabilizing with it. After three consecutive months of declines, U.S. consumer confidence ticked higher in February, concurrent with a stabilization in financial markets. Also, while the February jobs report missed on the headline jobs creation number, wages posted their best growth in a decade and the unemployment rate retreated back to record lows. Overall, the U.S. consumer is still very healthy today.The global consumer is healthy, too. China consumer confidence is bouncing back. Global consumer confidence is stabilizing. U.S.-China trade tensions are easing. FX headwinds are becoming less severe. As a result, the global consumer backdrop remains healthy enough to support continued growth at Skechers. The Internals Are FavorableMore importantly, the internals at Skechers remain healthy, and point to continued growth at the company for the foreseeable future.Ground-level trends remain favorable, such as the chunky sneaker and dad-look trends, and point to continued growing global popularity of the Skechers brand. Search-interest trends remain favorable on a domestic and global basis. Web traffic share continues to climb. Overall, the fundamentals imply continued healthy top-line growth for Skechers on a global basis.Concurrently, gross margins have continued on their multi-year uptrend, while the opex rate is finally falling back. Management expects this opex rate moderation to persist, and so long as it does, margins should remain on an uptrend.In the big picture, then, current trends and data points suggest that Skechers will remain a strong revenuer grower with healthy margin expansion potential for the next several quarters. The Valuation Is Still DiscountedEven more importantly, the valuation underlying SKX stock remains discounted relative to peers.Skechers trades at just 15 forward earnings. For comparison purposes, Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU) both trade at over 30 times forward earnings. Under Armour (NYSE:UAA) trades at over 60 times forward earnings. V.F. Corp (NYSE:VFC), the owner of Vans, trades at 22 times forward earnings.Further, most apparel retail stocks trade around 18 times forward earnings. The average forward P/E multiple across the entire consumer discretionary sector is 20. For footwear stocks, it's nearly 30.Overall, with a forward P/E ratio of just 15, SKX stock continues to trade at a sizable discount to essentially every comp in the market. Upside to $40 Is Fundamentally SupportedMost importantly, the fundamentals support upside in SKX stock to $40.Given historical growth trends, its still relatively small revenue base, and red-hot growth in the international segment, I think Skechers projects as a mid- to high-single-digit revenue grower over the next several years. During that stretch, gross margins should continue on their multi-year uptrend, since there are no obstructions in the foreseeable future, while the opex rate should normalize lower as revenue growth outpaces expense growth.Under those assumptions, I think Skechers can do about $4 in EPS by fiscal 2025. Based on a market average 16 forward multiple, this equates to a fiscal 2024 price target for SKX stock of $64. Discounted back by 10% per year, that equates to a fiscal 2019 price target of roughly $40. Bottom Line on SKX Stock * 7 High-Yield Telecom Stocks to Avoid Skechers stock was one of my top picks for 2019. It's early March, and the stock is already up more than 40% year to date. But this rally isn't over. Skechers remains an underappreciated and undervalued athletic footwear stock with plenty of room to run higher as favorable fundamentals continue to converge on a discounted valuation in 2019. This dynamic should drive SKX stock to $40 by the end of the year.As of this writing, Luke Lango was long SKX and NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post The 4 Big Reasons to Buy Skechers Stock appeared first on InvestorPlace.
Shares of Nike (NKE) have jumped 15% this year to outpace the S&P 500. The sportswear giant is also currently a Zacks Rank 2 (Buy) and its Q3 fiscal 2019 financial results are due out on March 21. This means it is time to see what to expect from Nike's quarterly earnings, revenue, and key business units, including China.
This bull market, after breaking longevity records in August of last year, is about to celebrate its 10th birthday. The current run, which started from the market low on March 9, 2009, has lifted the Standard & Poor's 500-stock index by more than 300%. That includes escaping what looked to be a brewing bear market during the final quarter of 2018.Not all stocks have performed equally over the course of the past decade, of course. Indeed, the disparity between the market's top performers and its bottom dwellers is shockingly wide. Some companies saw their shares crumble by more than 90%, while other stocks exploded by several thousand percent.Granted, those ultra-big winners are outliers, but more stocks have dished out quadruple-digit gains since early 2009 than you might think.Here are the stock market's 10 biggest winners for the past 10 years, and its 10 biggest losers. We've evaluated the entire Russell 1000 Index, which consists of 1,000 of the largest companies on U.S. exchanges. In all cases, remember that past performance is no guarantee of future results; some losers are in recovery mode, while some winners are unwinding their big moves. SEE ALSO: The 25 Best S&P; 500 Stocks of the Past 50 Years
A short list of consumer stocks is uniquely positioned to outperform the market as consumer spending, which accounts for two-thirds of economic activity, remains strong. Even as the economy slows, sales in 2019 should grow of 4%, excluding gasoline and autos, while e-commerce sales could rise 15% for the 10th straight year, according to Kiplinger.
Shares of Dick's Sporting Goods (DKS) have climbed over 22% this year to double the S&P 500's comeback. The question is can this impressive run continue, and should investors consider buying DKS stock before it reports its fourth-quarter financial results on Tuesday?
The S&P 500 has surged over 11% to start the year, driven by growth from the likes of Netflix (NFLX) and other giants. With that said, we have highlighted three blue-chip powers that look like buys at the moment.
Lululemon Athletica inc. (NASDAQ: LULU ) is primed to continue to take advantage of the growing trend of blending performance and fashion, according to a new report from Bank of America Merrill Lynch. ...
William Blair gives four picks from its “consumer near-term focus list,” which focuses on stocks its analysts think could rise over the next 60 days.
Lululemon Athletica Inc NASDAQ/NGS:LULUView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for LULU with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting LULU. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, growth of ETFs holding LULU is favorable, with net inflows of $6.32 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.