NKE - NIKE, Inc.
| Previous Close | 79.13 |
| Open | 79.95 |
| Bid | 0.00 x 800 |
| Ask | 0.00 x 1200 |
| Day's Range | 79.74 - 80.97 |
| 52 Week Range | 62.09 - 86.04 |
| Volume | 10,404,132 |
| Avg. Volume | 7,898,485 |
| Market Cap | 126.612B |
| Beta (3Y Monthly) | 0.72 |
| PE Ratio (TTM) | 61.04 |
| EPS (TTM) | 1.32 |
| Earnings Date | Mar 20, 2019 - Mar 25, 2019 |
| Forward Dividend & Yield | 0.88 (1.11%) |
| Ex-Dividend Date | 2018-11-30 |
| 1y Target Est | 86.55 |
- Yahoo Finance Video•2 days ago
Nike takes basketball sneakers back to the future
Nike is taking the basketball shoe back to the future with fresh, self lacing sneakers. Yahoo Finance's Adam Shapiro, Julie Hyman and Brian Cheung discuss with Yahoo Finance writer, Reggie Wade.
- Yahoo Finance Video•3 days ago
Nike ready to 'adapt' to the future of basketball with self-lacing kicks
Nike's newest self-lacing sneakers are here, going for $350 a pair and come with smartphone compatibility. Yahoo Finance's Brian Cheung had the opportunity to try them on, and joins us to discuss his experience.
- Zacks•yesterday
Nike (NKE) Up 19.1% Since Last Earnings Report: Can It Continue?
Nike (NKE) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- InvestorPlace•2 days ago
Potential Buyout Is Another Reason to Like Skechers Stock
M&A activity in the financial markets is picking up, as record levels of corporate cash converged on a steep market sell-off in late 2018 to create a plethora of acquisition opportunities, and corporations took advantage. Thus, it's no surprise that M&A rumors have started to swirl around athletic apparel brand Skechers (NYSE:SKX). Specifically, there has been chatter that global apparel giant V.F. Corporation (NYSE:VFC) is interested in buying Skechers at $40 per share. Skechers stock trades just north of $25. Naturally, the stock bounced higher on those rumors. Wells Fargo is skeptical such an acquisition will actually happen. Their rationale -- that Skechers doesn't really fit into the VFC wheelhouse -- makes sense. VFC's biggest brands include names like Vans, Timberland and North Face. Those have some, but minimal, overlap and synergies with Skechers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As such, a VFC acquisition of Skechers seems unlikely at this point in time. But, that doesn't mean Skechers stock won't be acquired in 2019 at a big premium. Instead, this rumor goes to show that there is high M&A interest related to Skechers, as there should be. The company and stock have "buyout target" written all over them. Thus, as M&A activity picks up in 2019, Skechers stock could very likely be acquired by a bigger retail company looking to expand into the athletic apparel space. ### VFC May Not Be the Buyer The rumor floating around is that VFC will buy Skechers at $40 per share. Skechers stock initially traded higher on the news. Then, it gave up some of those gains as investors questioned the legitimacy of the rumors. * 7 Retail Stocks to Buy for the Rise of Menswear Investors are right to express skepticism. VFC has built a portfolio of global apparel brands through acquisitions. In the 1960's, VFC acquired leading jeans brand Lee. Over the next fifty years, VFC acquired Wrangler, Bulwark, North Face, Nautica, Vans, Reef, Timberland, and many, many more. This M&A activity hasn't slowed recently. Over the past decade, VFC has made numerous brand acquisitions, both small and large. But, Skechers doesn't really fit into the VFC wheelhouse. Skechers is an athletic apparel brand which rubs elbow with Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY), and Under Armour (NYSE:UAA). There isn't much overlap between Skechers and North Face, or Skechers and Vans. Granted, VFC could be looking to make a play in an entirely untapped mainstream athletic apparel market. That would make sense. After all, the athletic apparel market is where all the growth is today. Skechers gives them a cheap entry into that big growth market. But it isn't likely, because VFC usually acquires companies within its wheelhouse. As such, VFC probably won't buy Skechers any time soon. ### But Skechers Is a Buyout Target Although VFC likely won't be the buyer, Skechers stock is a serious buyout target in 2019. The company has all the characteristics you'd want in a buyout target. Skechers has grown revenues at a consistent double-digit rate over the past five years, and has broad and global exposure to the rapidly growing athletic apparel market. Gross margins are high, and have consistently trended higher over the past five years. The brand clearly has staying power in the mid-price sneaker market, which is largely ignored by other athletic apparel companies. The domestic business is stable, while the international business is red hot. In sum, this is a growth company with staying power and high margins in a growth industry. Those are attractive features to a potential suitor. Skechers stock also has ideal characteristics for a buyout target. There's a lot of cash and short-term investments on the balance sheet (~$900 million), and hardly any debt (less than $70 million in long-term debt). Thus, the company has a net cash position of roughly $800 million, meaning the $4.2 billion market cap underlying Skechers stock translates into a $3.4 billion enterprise value. Sales over the past twelve months measure $4.5 billion, while EBITDA is around $520 million. Thus, Skechers stock is trading at roughly 0.7X EV/Sales and ~6.4X EV/EBITDA. Those are anemic multiples for a double-digit-growth company. A potential suitor could pay a huge premium for Skechers stock, and still only pay just over 1X EV/Sales. Overall, Skechers the company has buyout target written all over it. So does Skechers stock. As such, while VFC may not be the buyer, that doesn't mean the idea itself is off the table in 2019. ### Bottom Line on SKX Stock Skechers is a solid and stable growth company with a dramatically undervalued stock. That combination naturally attracts M&A interest. If Skechers stock remains this cheap for much longer, there will eventually be a takeout offer -- and likely at a huge premium. As of this writing, Luke Lango was long SKX and NKE. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Potential Buyout Is Another Reason to Like Skechers Stock appeared first on InvestorPlace.
- Market Realist•2 days ago
Analysts See More Upside in LULU after Its Strong Holiday Run
Analysts See More Upside in LULU after Its Strong Holiday RunAnalyst activity on LULUOn January 17, UBS raised its price target for Lululemon (LULU) stock to $148 from $135. Several analysts see further upside potential in Lululemon stock after the
- InvestorPlace•2 days ago
3 Big Stock Charts for Friday: General Electric, Nike and Wynn Resorts
A tepid start for stocks yesterday didn't last. Hope for an end to the trade stalemate with China led the S&P 500 to a close of 2,635.96, up 0.76% on a move that dragged most indices above key technical resistance. Bank of America (NYSE:BAC) led the charge again, gaining another 1.9% and setting a pace for most other banking and financial stocks. Advanced Micro Devices (NASDAQ:AMD) actually posted the bigger gain though, gaining 2.6%, yet also for no other reason than a potential end to the tariff-driven conflict. A handful of stocks were left out of the rally, however. Morgan Stanley (NYSE:MS), for instance, fell 4.5% after posting surprisingly poor results for its recently-ended quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As has been noted already, the divergence among stocks is actually beneficial, as it makes clear that not every stock is subject to the greater market tide. Stock-specific setups are at least a bit more trustworthy. To that end, take a look at the stock charts of Nike (NYSE:NKE), General Electric (NYSE:GE) and Wynn Resorts (NASDAQ:WYNN), all three of which are dropping hints of brewing, trade-worthy moves. ### General Electric (GE) Last week, General Electric was discussed as a budding rebound candidate that had bumped into a short-term ceiling. Though it was a hurdle that could have been challenging to clear, the undertow was encouraging. * 7 Stocks to Buy as the Dollar Weakens That resistance remained intact for the next several days. As of Thursday, though, the bears flinched and the bulls tipped the scales just enough to merit another look. Click to Enlarge • The ceiling in question is right around $9, plotted with a white dashed line. That line kept the buyers at bay for the better part of a week, but could no longer do so. Thursday's high and close were both above that mark. • The shape of the turnaround is also compelling. Smooth, u-shaped turnarounds tend to result in longer-lived rallies than sharp V-shaped ones do. • Although the buyers are back in charge, there aren't a whole lot of them. The buying volume needs to improve, though it likely will as (or if) GE works its way through the 100-day and 200-day moving average lines. It's going to be more of a process than an event though. ### Wynn Resorts (WYNN) With nothing more than a quick glance at the daily chart of Wynn Resorts it might look like the stock is merely chopping sideways after last year's meltdown. When taking a step back and looking at the bigger picture though -- and examining the weekly chart up close -- it becomes clear there's more underway than just some sideways consolidation. The bulls are testing the waters for a reversal, having broken through some well-established resistance lines. Click to Enlarge • The big resistance line that no longer matters is the one that tags all the major highs between June and October. Plotted with a yellow dashed line, that barrier was broken in late November. The bears took another shot in December, but couldn't keep it down. • The next major ceiling is the gray 100-day moving average line, currently at $115.43. The buyers have demonstrated a bit of hesitation at it nears, but if it's cleared, there's little left to hold WYNN down. • Beyond the 100-day moving average line, the next most plausible ceilings are the Fibonacci retracement lines at $132.80 and $160.40. The white 200-day moving average line around $145 is also a possible stopping point. ### Nike (NKE) A week ago, we pointed out how Nike shares had been habitually unable to hurdle a key moving average line. Though the third bump into this ceiling had not yet started another downtrend, until it was cleared, NKE was tough to justify buying. It has been cleared since then. In fact, another major technical ceiling was cleared as of Thursday. It's not a perfectly proven or clean break yet, but it's close enough to refresh our look. Click to Enlarge • The technical ceiling in question a week ago was the gray 100-day moving average lines. Failed tests of that level as a ceiling are highlighted in blue. Nike broke above it on Tuesday. • Perhaps just as important, Nike's surge on Thursday has carried the stock above the recent technical ceiling around $78.80, plotted with a yellow dashed line. • Though a solid thrust, the volume behind the effort has been thin. More buyers need to step up, but before they do they may want to see NKE slide back below $78.80, regroup, and march higher again. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 3 Big Stock Charts for Friday: General Electric, Nike and Wynn Resorts appeared first on InvestorPlace.
- Motley Fool•2 days ago
Maybe Ron Johnson Was Right About J.C. Penney After All
His ideas for changing how department stores operated were radical, but they might also be essential.
- TechCrunch•3 days ago
Nike's auto-laced future
The shoe is an evolution of the Nike HyperAdapt 1.0, which is itself a commercialization of the Air Mag — a self-lacing vanity project that realized the self-lacing shoes mocked up for Back to the Future II. To be fair, this response is exactly the same one that Nike's first self-lacing model received.
- Zacks•3 days ago
Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE) closed at $79.13 in the latest trading session, marking a +1.87% move from the prior day.
- GuruFocus.com•3 days ago
Nike Inc (NKE) CHAIRMAN, PRESIDENT & CEO Mark G Parker Sold $11.7 million of Shares
CHAIRMAN, PRESIDENT & CEO of Nike Inc (NYSE:NKE) Mark G Parker sold 150,000 shares of NKE on 01/16/2019 at an average price of $78 a share.
- CNBC•3 days ago
Nike's gamble and social media regulation
Jon Fortt sits down with Pulitzer Prize-winning author Charles Duhigg and former Reddit CEO Ellen Pao to discuss Nike's ad featuring Colin Kaepernick and big tech heading to the Hill.
- InvestorPlace•3 days ago
3 Retail Stocks to Buy As They Rise From the Ashes
The past month's rousing market rally has been a rising tide lifting all boats. Every sector has participated in the broad-based boom, and some industries have even reclaimed all that was lost during December's disaster. The action in retail stocks has been particularly strong with many attractive stocks to buy. To assess the action, we'll use the SPDR Retail ETF (NYSE:XRT), which counts all of the sector's biggest companies among its holdings. Since bottoming at $38.10, XRT has climbed 15% to test the descending 50-day moving average. Two bullish developments from the past week suggest further upside could be in the offing. First, the down-gap caused by lousy earnings news from Macy's (NYSE:M) on Jan. 10 was rapidly reversed showing dip buyers remain aggressive. Second, XRT's ability to hold firm in the face of overhead resistance suggests sellers are thus far powerless to turn the fund lower. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Top 10 Global Stock Ideas for 2019 From RBC Capital With that said, here are three retail stocks to buy that stand out among the rest in the space. ### Bed Bath and Beyond (BBBY) Bed Bath and Beyond (NASDAQ:BBBY) entered this month's earnings release in desperate need of a positive catalyst. Deteriorating fundamentals have driven BBBY stock down as much as 87% from its 2013 peak before the recent rebound. Fortunately, the company was able to deliver earnings that beat estimates (18 cents versus 17 cents) and report improved guidance for 2019. The stock soared almost 30% in the three days after earnings before pulling back on profit-taking. This three-day retracement is creating an attractive low-risk entry for traders anticipating further upside. BBBY is now above its 20-day and 50-day moving averages, so bulls have wrested control of the short-term trend. And volume patterns look constructive with large volume accompanying the breakout and light volume during this week's retreat. Once BBBY breaks above a prior day's high, buy the May $14/$19 bull call spread for around $1.75. The risk is limited to $1.75, and the reward is limited to $3.25. ### Nike (NKE) The technical posture of Nike (NYSE:NKE) has improved considerably since Christmas. With the 18% rally off the lows, NKE stock has climbed back above all major moving averages, returning to key horizontal resistance near $79. This level has kept a lid on the shares ever since October, which means its eventual break will signal a major victory for bulls. It will also set Nike shares up for a run toward their 2018 high of $86.04. * 10 Growth Stocks With the Future Written All Over Them Implied volatility has come in considerably, making long premium plays more tempting than short ones. Buy the March $80/$85 bull call spread for around $1.50. The risk is limited to $1.50, and the reward is capped at $3.50. ### Lululemon Athletica (LULU) Source: ThinkorSwim Lululemon (NASDAQ:LULU) rounds out today's trio and carries one of the best looking charts in the retail sector. Its recent trend reversal higher received a boost on Monday when the company raised its guidance for fourth-quarter earnings. LULU stock gapped up and has continued climbing each day since. It's now testing an important horizontal resistance threshold around $147. Breaking above it should clear the runway for a ramp toward its all-time high of $164.79. And with all major moving averages now rising beneath the price, I see few reasons why LULU won't continue pushing north. To bank on the continued upside, buy the March $145/$155 bull call spread for $4.25. The risk is limited to $4.25, and the reward is limited to $5.75. As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to protect your portfolio against a crash. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 3 Retail Stocks to Buy As They Rise From the Ashes appeared first on InvestorPlace.
Yahoo Finance•3 days agoNike ready to 'adapt' to the future of basketball with self-lacing kicks
Nike unveiled its new, slightly more affordable self-lacing shoes that the company says is durable enough to be used by the biggest NBA superstars. Yahoo Finance checked it out at the global unveil.
- InvestorPlace•3 days ago
Innovation Will Keep Nike Stock on a Winning Path
If anything has become clear over the past two decades, it is that Nike (NYSE:NKE) is a long term winner. While other fashion brands have come and gone with often fickle fashion trends - think Abercrombie & Fitch (NYSE:ANF), Under Armour (NYSE:UAA), Fossil (NASDAQ:FOSL), or L Brands (NYSE:LB) Victoria's Secret - Nike simply hasn't. Nike stock has remained almost fad-proof. For over two decades now, the company has stood firmly atop the secular growth athletic apparel market, and that has powered Nike stock to consistent gains in a long term window. This will remain true for the foreseeable future for several reasons. Above all else, Nike is innovating way faster than all of its peers, leveraging technology to optimize its product creation strategy, and is bringing new, fresh, and exciting products to market with unprecedented pace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips All of those things boost Nike brand among both professionals and amateurs alike, and maintain Nike as the premiere athletic apparel brand in the world. * 7 Stocks to Buy as the Dollar Weakens Those initiatives will also keep Nike on a winning path for a lot longer. Every now and then, NKE gets slightly undervalued. See mid-2017. It also gets slightly overvalued from time to time. See mid-2018. Ultimately, those are just opportunities to add and trim. At the end of the day, Nike has risen a whopping 560% over the past ten years. Investors have every reason to believe a similar rally will unfold over the next ten years. Thus, NKE is a long term buy-and-hold. Trim on big rallies. Add on big dips. But ultimately stick with NKE stock for the long haul. ### Nike's Innovation Is Firing on All Cylinders If there's one thing that is most important in the apparel market, it is innovation. If you innovate better and more quickly than anyone else, then you will consistently bring better and more exciting products to market. Better and more exciting products boost brand awareness and image. Boosted brand awareness and image attracts professionals and amateurs to your brand. Revenues go up, so you have more money to spend on professional endorsements, which in turn attracts more amateurs, who bring in more money. It's a positive feedback loop that all starts with innovation. Over the past two decades, Nike's innovation in the athletic apparel market has been unprecedented. This arguably remains more true today than it has even been before. Case 1: Nike Adapt BB. Nike just launched its first ever self-lacing smart basketball shoe. It's a smart shoe which is controlled by and connected to a smart device, and tightens or loosens based on user preference. Think real world Back to the Future applied to basketball shoes. Most other athletic apparel companies have yet to launch a self lacing shoe. Nike is applying this technology to performance shoes. Clearly, Nike is way ahead of the curve on self lacing technology. Regardless of if this footwear style becomes the norm or not, Nike's innovation advantage here illustrates just how forward-thinking this company is. Case 2: Nike's Consumer Direct Sciences team. Nike recently expanded its partnership with big data and AI firm Gridsum (NASDAQ:GSUM) to enhance Nike's data driven marketing and sales approach in China. This deal simply shows that Nike is much more than an athletic apparel company. They are a technology company that leverages big data analytics to influence and optimize product creation, assortment, and distribution. Overall, it is clear that Nike is innovating where no one else is the athletic apparel space is innovating. Such innovation has powered huge gains and unprecedented stability in Nike stock over the past twenty years. It will continue to do so over the next twenty years, too. ### Nike Stock Will Remain a Winner Here are the characteristics which have defined NKE over the past five years: * Mid to high single digit annualized revenue growth. * Stable operating margins in the low teens range. * Forward P/E multiple around 25. Those characteristics have been good enough to lead to Nike stock more than doubling over the past five years. In comparison, here are the characteristics which should define Nike stock over the next five years, given the company's innovation and leadership position in a secular growth athletic apparel market: * Mid to high single digit annualized revenue growth. * Slight operating margin expansion due to more premium product assortments. * Forward P/E multiple around 30. Essentially, revenue growth should be the same, and higher earnings growth potential through a more positive outlook on margins is compensated for in a higher forward P/E multiple. Thus, Nike stock is supported by largely the same characteristics today as it has been over the past five years, a stretch in which Nike stock doubled. In this light, Nike stock looks ready to double again over the next five years. ### Bottom Line on NKE Stock Given the company's unprecedented innovation, long history of market leadership, and track record of operational excellence, Nike stock is a long term winner. Dips are merely opportunities to add. Rallies are opportunities to sell. In the long run, this stock will trend significantly higher. As of this writing, Luke Lango was long NKE, FOSL, and LB. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post Innovation Will Keep Nike Stock on a Winning Path appeared first on InvestorPlace.
- Markit•3 days ago
See what the IHS Markit Score report has to say about Nike Inc.
# Nike Inc ### NYSE:NKE View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is extremely low for NKE 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 NKE. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $8.87 billion over the last one-month into ETFs that hold NKE are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. NKE credit default swap spreads are at their highest levels for the past 3 years, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to score@ihsmarkit.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.
- Market Exclusive•3 days ago
Market Morning: Self-Lacing Nikes, Cheers to Bob Marleys, SocGen Warns, BlackRock Calls A Bottom
Nike Unveils Back To The Future II Self-Lacing Shoe 3 Years Too Late The self-lacing shoes popularized by Marty McFly in Back To The Future II have finally arrived, though three years later than the movie originally envisioned. Nike’s (NYSE:NKE) Adapt BB basketball shoes automatically resize themselves to the wearer’s foot, with the size being […] The post Market Morning: Self-Lacing Nikes, Cheers to Bob Marleys, SocGen Warns, BlackRock Calls A Bottom appeared first on Market Exclusive.
Market Realist•3 days agoNike: Analysts’ Recommendations
Analyzing Nike’s Growth Prospects in 2019(Continued from Prior Part)Analysts recommend a “buy”As of January 14, among the 37 analysts covering Nike (NKE) stock, 68% recommend a “buy,” 30% recommend a “hold,” and 2% recommend a
- InvestorPlace•3 days ago
Can Anything Stop Lululemon From Ruling the World?
Nothing much looks like it can stop Lululemon (NASDAQ:LULU) now. In fact, business is going so well for the Vancouver-based athleisure brand that it upped its top- and bottom-line guidance January 14, prompting several analysts to raise their target price for LULU stock. That's excellent news if you're a shareholder. Nike (NYSE:NKE) recently introduced its line of yoga wear in an attempt to capture some of Lululemon's action. Not only is Nike introducing its first yoga line (what took so long?), it's also providing free yoga workout regimens -- anywhere from 15 minutes to 45 minutes -- through the company's Nike+ Training Club app. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "These new workouts are really powerful because they offer the chance to practice no matter what your goal is or where you are on your yoga journey," Nike Master Trainer and yogi Leah Kim said about the workouts. "With the varying workout focus areas, lengths and poses, there is something for everyone -- from the beginner yogi looking to improve their practice to those who are more advanced." * 7 Oversold Small-Cap Stocks With Massive Profit Growth I've covered LULU stock for a long time. The one constant from detractors has always been that Nike and Under Armour (NYSE:UAA) would someday awaken to the fact that Lululemon is for real and put some effort into stealing some of its thunder. ### Has That Day Arrived? Not by a longshot. Yes, Nike is a much bigger company than Lululemon. In the last 12 months, Nike had $38 billion in revenue on a global basis, almost 13 times Lululemon's. But Nike is very late to the yoga party. It can't even hold a candle to Athleta, Gap's (NYSE:GPS) yoga-inspired brand, and that says all you need to know about the level of concern LULU CEO Calvin McDonald has for his much bigger rival. The reality is that Nike should have acted 2-3 years ago if it genuinely wanted to own this segment of the athleisure-apparel industry. So the question isn't whether Nike or Under Armour can steal LULU's thunder; the question is how big can Lululemon get? I'd say pretty darn big. ### Lululemon Has Barely Scratched the Surface If you follow Lululemon stock, you might be aware of the company's goal to hit $4 billion in revenue by the end of 2020. Given the company's latest guidance revision, I'd say there's a good chance for the company to hit the self-imposed target before the end of next year. Two things stand out from its latest guidance. First, it was expecting Q4 2018 same-store sales to hit low double-digit growth in the best-case scenario, with overall revenue of $1.13 billion at the top end of its previous forecast. Now, it expects Q4 2018 same-store sales growth to possibly hit high double-digits with revenues as high as $1.15 billion. That's $200 million in additional revenue. And remember, there are still two weeks left in the fiscal year and quarter. It's possible consumers could do more damage to their credit cards between now and then. Unlikely, but you never know. On the bottom line, which is what truly drives share prices, the company expects earnings per share of $1.72-$1.74, eight cents higher than the low-end of its previous guidance and seven cents higher on the top end. Cowen analyst John Kernan recently met with LULU CFO Patrick Guido and came away so impressed that he raised his price target by $3 to $188, providing 32% upside over the next 12 months. Considering the volatility of the markets over the final three months of 2018, it says a lot about Lululemon's current competitiveness. In fact, business has been so strong that the company could raise its 2020 targets when it announces fourth-quarter earnings in March. More likely, it will come up with a new five-year target -- I'd expect at least $6 billion -- and get to work to meet and exceed the new number. ### The Bottom Line on LULU Stock As McDonald said in the company's press release revising guidance, Lululemon had a very strong year. I expect it to have another strong year in 2019 and again in 2020. Investors continue to underestimate the company's desire to compete. It's important to remember that it continued to execute at a high level in 2018 despite the fact it didn't have a CEO for more than five months. That speaks to the dedication of the company's employees in the stores and at head office. * 10 Growth Stocks With the Future Written All Over Them The only thing that can stop Lululemon from ruling the world is a recession, and that's not likely until 2020. As apparel brands go, LULU is the one to own for the long haul. 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 * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Can Anything Stop Lululemon From Ruling the World? appeared first on InvestorPlace.
- InvestorPlace•3 days ago
Nike Stock Still Needs a Lot of Outside Help
The question when it comes to Nike (NYSE:NKE) is valuation. There's little argument that Nike's business is attractive, the concern is the price of NKE stock. * 12 2018 Winners That Will Be Big Ol' Losers in 2019 And price does matter here. In 2015, the earnings multiple assigned to Nike stock reached the mid-20s. NKE spent the next two years trading basically flat before rallying in 2018. At a current price of $77, investors again are paying about 25 times forward earnings. That seems too dear a price, even for this business. I made a similar argument about six months ago -- and, since then, Nike stock basically is flat. That's not a bad performance, actually -- broad markets are down over that stretch -- but it leaves NKE stock in a similar position to where it stood in July, and in late 2015. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Again, the business is attractive. But if the stock is going to rise from here, outside factors will need to cooperate as well. And, in this market, I'm not sure I expect that outside help -- or believe that NKE is the play if it comes. ### Footwear Still Drives Nike Stock When NKE neared its lows late last year, one big issue was that demand in the footwear category seemed to be slowing. In the first quarter of fiscal year 2018 (the three months ending August 31, 2017), for instance, total Nike revenue actually was flat year over year. U.S. sales declined. And that wasn't just a Nike problem. Rather, it seemed like the demand for high-end sneakers, in particular (a hot trend for years), was starting to fade. Weakness at Under Armour (NYSE:UA,UAA) and even adidas AG (OTCMKTS:ADDYY) showed that Nike wasn't alone in seeing revenue growth slow. Since then, results have improved essentially every single quarter, including a strong Q2 FY19 report. Easy comparisons have helped somewhat the last two quarters -- but Nike's execution gets some of the credit as well. That said, so does the category. Results from rivals show that footwear demand overall has rebounded. The same is true of customers. Foot Locker (NYSE:FL) has posted better numbers and so have other retailers like Shoe Carnival (NASDAQ:SCVL) and DSW (NYSE:DSW). The sneaker trend seems to be back. The question for NKE stock is what happens if and when it fades again. As we saw last year, even a market leader can't drive growth if the category on the whole slows down. And either fashion changes or a weakening economy could again lead footwear demand to slow. That almost certainly would be bad news for NKE. ### The China Story for NKE Stock Nike needs some help from the Chinese economy as well. Nike's performance in China is becoming a larger part of the story behind NKE stock. Revenue in Greater China rose 31% on a constant-currency basis in Q2, accelerating from 20% growth in Q1. The market has driven over 15% of total Nike sales in the first half -- and is responsible for over one-third of this year's total revenue growth. Does that strength hold? The rising popularity of basketball in China and the growing middle class both suggest the market could be enormous for Nike, with years of growth ahead. But there also are at least near-term concerns about the impact of the trade war and an apparently slowing Chinese economy. We've seen both Starbucks (NASDAQ:SBUX) and particularly Apple (NASDAQ:AAPL) get dinged by exposure to that market. There's a risk for Nike, too. Second-half growth, as comparisons get tougher, is going to depend at least in part on strong results from China. If the trade war has any effect, that could color even the long-term story for NKE. ### Better Options Elsewhere? None of this is to suggest that Nike stock is a short -- or even necessarily a sell. But the stock does need at least some cooperation from external factors -- at a time when investors are notably more worried about those factors. And where the case for NKE weakens is in the idea that there are better investment opportunities out there beyond paying mid-20s earnings multiples for NKE. There's no shortage of cheaper plays on China growth, both direct in-country providers and stocks like AAPL. A macro downturn would hit Nike stock hard: the stock slipped 20% just between early October and mid-December on basically no news. I'd rather take that cyclical risk with stocks that haven't yet recovered to the same extent (here, too, there are myriad options, particularly in semiconductors and housing). Has Nike peaked? Probably not. Is NKE stock going to rise longer-term? Probably; it's been a hugely impressive investment over time. But it's tough to make a compelling case for paying 25x next year's earnings for a stock that does have some external risks. * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One Investors willing to take those risks can find much cheaper options elsewhere. Even if those risks don't materialize, and NKE stock rises, it seems like other stocks could, and will, do much, much better. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Nike Stock Still Needs a Lot of Outside Help appeared first on InvestorPlace.
- InvestorPlace•4 days ago
6 Single-Digit P/E Stocks With Huge Upside
Markets are volatile right now. Due to concerns regarding a looming U.S. recession, fears surrounding the Federal Reserve's rate hike trajectory and uncertainty with respect to U.S.-China trade talks, investors have taken an increasingly cautious approach to equities over the past several months. As they have, volatility has spiked, and wild swings in stocks have become the norm. Amid all this volatility, it's good to find some stability. Stability can come in two forms in the equities market. You could have a defensive stock with stable ongoing operations that are largely resilient no matter the macroeconomic conditions. Or, you could have a really cheap stock that investors won't push down further because it has already been pushed down far enough. In this gallery, we will look at that second class of stocks. Specifically, we will look at single-digit P/E stocks that are so cheap, them falling further seems almost impossible. Yet, if just one little positive catalyst arrives, these single-digit P/E stocks could rally in a big way. As such, these stocks are classified as ones with mitigated downside potential, but huge upside potential. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks With Growth on the Horizon With that in mind, let's take look at six single-digit P/E stocks that look ready to turn a corner and rally in a big way. ### GameStop (GME) Source: Shutterstock Forward P/E Multiple: 6.1 Video game retailer GameStop (NYSE:GME) has been decimated on Wall Street over the past several years as the company's operations have become increasingly less relevant due to the growing popularity of video game downloads. Pretty much everyone sees this company as going the way of Blockbuster, and ultimately heading for the exits within the next decade. Yet, there's one profitable way out for GME shareholders: a private equity buyout. Sure, it seems silly, but it might just happen. Although GameStop is heading for the graveyard, it will produce a lot of cash flow on its way there, and with the stock so cheap (only 6X forward earnings), a private equity firm can come in a buy the company and earn healthy ROI through a few good years of cash flow production. If this takeout does happen, it will likely happen around $20 per share, implying healthy upside potential for GME stock. ### Single Digit P/E Stocks: AT&T (T) Source: Shutterstock Forward P/E Multiple: 8.6 Although telecom giants are usually seen as a beacon of stability and a defensive play for investors during turbulent times, the opposite has been true for AT&T (NYSE:T). AT&T stock has dropped in a big way with the rest of the market, mostly because the big concern hitting the markets (the threat of the Fed rising rates too fast) is a big worry for AT&T, too. Due to multiple recent acquisitions, AT&T's balance sheet is loaded up with debt. The higher rates go, the more that balance sheet is pressured, and the more investors shun the stock. But that big threat is moving into the rearview mirror in 2019. Multiple Fed members have come out and voiced dovish opinions regarding the rate hike path in 2019. Even Fed Chairman Jerome Powell implied that multiple further rate hikes are unlikely. * 10 Growth Stocks With the Future Written All Over Them With this headwind being left in 2018, shareholders are left with an AT&T stock that is trading at a dirt-cheap valuation (8.6X forward earnings) with a big yield (6.6%) and strong earnings power through stable telecom and media-related operations. That's an attractive combination that will bring in multiple buyers, so long as the Fed stays on the sidelines. ### Dick's Sporting Goods (DKS) Source: Shutterstock Forward P/E Multiple: 9.9 The brick-and-mortar retail sector has been stung over the past several years due to the rapid rise of e-commerce. One of the retailers feeling the sting most is Dick's Sporting Goods (NYSE:DKS). In addition to a secular shift towards e-commerce, Dick's is being hurt by athletic apparel brands increasingly emphasizing direct sales, meaning more product sold directly through Nike (NYSE:NKE) or Adidas (OTCMKTS:ADDYY), and less product sold through Dick's. If this trend continues, that essentially means lower sales into perpetuity. These concerns, however, seem overblown. This shift from wholesale to direct in the athletic apparel world is happening. But, it's happening mostly at lower tier players like Big Five Sporting Goods (NASDAQ:BGFV), not at Dick's. Due to its size and branding, Dick's is still seen as a valuable wholesale partner in the athletic apparel world. As such, concerns about this middle man getting axed are overblown. As operations improve in 2019 due to easy laps, single-digit P/E stock DKS should roar higher. ### IBM (IBM) Source: Shutterstock Forward P/E Multiple: 8.8 Blue-chip technology giant IBM (NYSE:IBM) has had a rough run over the past several years. The company's revenue growth profile has been persistently weak, and healthy growth in the cloud business has been unable to consistently offset declines in the legacy business. Margins have struggled. Earnings haven't gone anywhere. Debt is piling up. As such, the stock has struggled. But, a big acquisition of hyper-growth hybrid cloud company Red Hat (NYSE:RHT) could change all of that. Red Hat is a double-digit revenue grower with 85%-plus gross margins and 20%-plus operating margins. IBM, by contrast, is a flat revenue growth company with 50% gross margins and almost 20% pre-tax margins. Thus, at scale, Red Hat should super-charge revenue growth and be materially additive to margins. * 10 A-Rated Stocks the Smart Money Is Piling Into If so, earnings growth will turn a corner. If it does, investors will realize this stock is way too cheap at 8.8X forward earnings and with a 5%-plus yield, and the stock will normalize significantly higher. ### Micron (MU) Source: Shutterstock Forward P/E Multiple: 4.8 Concerns regarding a global semiconductor industry slowdown have killed shares of memory chipmaker Micron (NASDAQ:MU) over the past several months. At its core, the growth narrative at Micron is all about supply and demand. When demand is high and supply is low, chip prices are high, margins are high, and profits are big. When demand is low and supply is high, chip prices are low, margins are low and profits are nothing. Right now, the fear is that we are shifting from a high demand/low supply market, to a low demand/high supply one, and that is why investors have punished MU stock. This punishing will last for the foreseeable future. But once gross margins turn a corner and start expanding again, MU stock will bounce back in a big way. This should happen sooner rather than later. The high-supply part of the equation isn't changing anytime soon, but the low demand part seems like a temporary hiccup from trade war issues, in what is an otherwise very strong secular growth narrative fueled by ever increasing demand from AI and data related markets. As such, once trade war issues are resolved, demand will normalize, and this will bring gross margins higher. When that happens, MU stock will explode higher given its anemic valuation as a single-digit P/E stock. ### Single Digit P/E Stocks: L Brands (LB) Source: Shutterstock Forward P/E Multiple: 9.8 Once a high flyer that was an icon of retail success, L Brands (NYSE:LB) has sharply reversed course over the past several years as its Victoria's Secret brand has struggled to grow sales amid rising competition and shifting consumer appetites. Broadly speaking, Victoria's Secret rose to power in the women's lingerie market during a time when bombshell beauty was the gold standard and push-up bras were what everyone wanted. Now, bombshell beauty is viewed as cheesy and artificial. Instead, consumers are opting for more natural beauty products like bralettes. As this shift has played out over the past several years, Victoria's Secret has struggled in a big way, and those struggles have killed LB stock. But there's reason to believe Victoria's Secret is turning a corner. The business reported 2% comparable sales growth in November against a -4% lap, marking one of its best one- and two-year comparable sales marks in several months. * 7 Stocks at Risk of the Global Smartphone Slowdown Meanwhile, L Brands' other segment, Bath & Body Works, fired off a record 18% comparable sales growth in November. In other words, it isn't all doom and gloom at L Brands. Once Victoria's Secret permanently turns a corner, this stock will rally in a big way. As of this writing, Luke Lango was long GME, INTC, T, IBM, and LB. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 6 Single-Digit P/E Stocks With Huge Upside appeared first on InvestorPlace.
Market Realist•4 days agoComparing Nike’s PE Ratio with Its Peers
Analyzing Nike’s Growth Prospects in 2019(Continued from Prior Part)Forward PE ratiosOn January 14, Nike’s (NKE) 12-month forward PE ratio was 25.8x.Under Armour (UAA), Skechers (SKX), Columbia Sportswear (COLM), and Lululemon Athletica (LULU)
Market Realist•4 days agoNike’s Bottom-Line Numbers Could Be Impressive
Analyzing Nike’s Growth Prospects in 2019(Continued from Prior Part)Nike’s margins For the first two quarters of 2018, Nike’s (NKE) gross margin expanded by 70 basis points to 44.0% due to higher full-price selling and improved margins for
- Engadget•4 days ago
A closer look at Nike's Adapt BB auto-lacing basketball shoes
Back in December of last year, Nike revealed during its quarterly earnings call that it was getting ready to introduce a $350 self-lacing basketball shoe. Ever since, sneakerheads have been highly anticipating the successor to the 2016 HyperAdapt 1.0, Nike's first consumer-grade sneaker with power laces. Enter the Adapt BB, an auto-lacing, app-controlled basketball shoe that's packing a ton of technology inside it.
- Bloomberg•4 days ago
Gold, Nikes and Cheap Food
(Bloomberg Opinion) -- My midweek morning train reads:Stock-pickers don’t know how to sell: Random selling outperforms PMs (Bloomberg)Bigger gold companies still aren’t glitterati: Heftier companies aren’t likely to solve the industry’s fundamental problems (Wall Street Journal)If earnings have peaked, will a stock wipe-out follow? Corporate profits likely crested in last year’s third quarter. But that might not be too bad. ...
- Market Realist•4 days ago
What Could Drive Nike’s Top Line in 2019?
Analyzing Nike’s Growth Prospects in 2019Future expectationsNike (NKE) is one of the most well-known sports footwear and apparel brands in the world.For the third quarter of fiscal 2019, Wall Street analysts expect Nike’s revenues to rise 6.3%
