|Bid||0.000 x 0|
|Ask||0.000 x 0|
|Day's Range||115.30 - 116.75|
|52 Week Range||101.48 - 133.01|
|Beta (3Y Monthly)||0.68|
|PE Ratio (TTM)||26.09|
|Forward Dividend & Yield||1.55 (1.36%)|
|1y Target Est||138.14|
MLS continues to grow and has plans for expansion. Yahoo Finance's Dan Roberts, Julie Hyman, Adam Shapiro and MLS Commissioner Don Garber discuss.
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.
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.
Today we'll look at adidas AG (FRA:ADS) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us Read More...
In a new report researchers at the McKinsey Global Institute argue that even before President Donald Trump launched his trade wars the era of offshoring and disruption that left many factory towns in the advanced world reeling was over. “We have already started the next chapter of globalization and we think it’s important for everyone -- companies and policy makers -- to realize which chapter we are in.
Shares of Lululemon (LULU) soared as high as 8% in morning trading Monday after the yoga apparel powerhouse raised its Q4 earnings and revenue guidance.
The market struggled for gains on Monday, Jan. 14, but one stock that strongly bucked the broader market trend was Lululemon (NASDAQ:LULU). The athletic apparel company provided a positive update on fourth-quarter numbers following a strong holiday season. Management lifted their fourth-quarter comparable sales growth, revenue and profit guides. Lululemon stock jumped nearly 10% in response. In the big picture, the holiday sales update confirms that the Lululemon brand isn't losing any momentum, and that the company does have a medium to long-term opportunity to continue to grow sales at a rapid rate and transform into a mini Nike (NYSE:NKE) or mini Adidas (OTCMKTS:ADDY) for a higher price point audience. That outlook is favorable for Lululemon stock. Even after this 10% pop, the market cap on Lululemon stock is still under $20 billion. Adidas has a $40 billion-plus market. Nike's market cap is up over $120 billion. Thus, if Lululemon can sustain its present operational momentum, Lululemon stock will continue on an upward path. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Having said that, the stock now seems fairly valued. Upside in the near term may be capped by valuation. But, longer term, this will be a $200-plus stock, meaning there's no reason to sell for long-term investors. ### High Quality Holiday Update From head to toe, Lululemon's fourth-quarter guidance update was a healthy one with no glaring negatives. Based on strong holiday sales, Lululemon upped its comparable sales, revenue and earnings guides for the fourth quarter. Comparable sales were supposed to be up ~10%. Now, they are supposed to rise in mid- to high-teens range. Revenues were supposed to grow just over 20%. Now, the company is guiding for 23% revenue growth. Earnings were supposed to come in at $1.66. Now, they are expected at $1.73. From all those updates, there are two big takeaways. * 10 Companies That Could Post Decelerating Profits One, the outstanding momentum that the Lululemon brand generated in early 2018, didn't lose any steam by the end of the year. Through the first three quarters of the year, comparable sales were growing in the mid- to high-teens range. Management shocked the world in early December by saying that fourth-quarter comparable sales growth would slow dramatically to ~10%. Lululemon stock dropped. As it turns out, management just sandbagged that guide. Comparable sales growth isn't going to slow all that much in the fourth quarter. Instead, it will be almost exactly what it has been all year (15%-plus), and that's proof that this brand's operational momentum is more than just a flash in the pan. Two, Lululemon is generating high quality, high margin sales growth acceleration. Lululemon management hiked the revenue guide by 2%. The company hiked the earnings-per-share guide by 4%, and they also kept the expected tax rate and share count constant. The implication is that margins progressed much better than expected during the quarter. That means this sales momentum is not promotion driven. Instead, it's demand driven, and that bodes well for continued success in 2019. ### A $200 Stock In the Long Term In the big picture, Lululemon's holiday sales update confirms that this company remains a big revenue growth, big margin expansion company with big long-term potential. Putting numbers to those words, this is most likely a 10-15% revenue growth company over the next several years as growth slows from tougher laps and with bigger scale. During that stretch, gross margins should continue to expand due to pricing power from huge demand, and opex rates should fall thanks to steady double-digit revenue growth. All together, this is a 10-15% revenue growth company with healthy long-term margin drivers. Modeling that out, I believe Lululemon has the opportunity to grow EPS to $8.50 by fiscal 2023, on a sales base of nearly $6 billion by then and operating margins north of 25%. At that point in time, Lululemon stock should trade at a Nike-type multiple. Nike normally trades around 25 forward earnings. A 25 forward multiple on $8.50 implies a fiscal 2022 price target of over $210. Discounted back by 10% per year, that equates to fiscal 2018 price target of $145. * 7 Pharmaceutical Stocks That Just Raised Prices This Year Thus, in the near term, Lululemon stock seems fairly valued. But, in the long run, this stock will march above $200 within the next four to five years. ### Bottom Line on LULU Stock Lululemon continues to execute flawlessly on its opportunity to go from niche, yoga-focused retailer, to broad, athletic apparel retailer. That opportunity is huge, and paves the path for Lululemon stock to march above $200 in the long run. In the near term, valuation friction may create some turbulence. That turbulence is just noise, and should be largely ignored by long-term investors. As of this writing, Luke Lango was long LULU and NKE. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Holiday Sales Update Confirms Lululemon Stock Is Heading to $200 appeared first on InvestorPlace.
The world's largest consumer technology company, Apple (NASDAQ:AAPL), fired a warning shot heard around the world that their biggest product, the iPhone, was seeing much slower-than-expected growth in one of its biggest markets, China. Investors everywhere freaked out, with the S&P 500, Dow Jones and Nasdaq all dropping well over 2% in response. The big takeaway is that the end of quantitative easing and rising U.S.-China trade war tensions are combining to create major headwinds for the global economy. This is especially true in China, where the 2018 slowdown is threatening to get worse in 2019. That's bad news for stocks with exposure to China. Unfortunately, there are a bunch of stocks out there with ample exposure to the world's second-largest economy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Specifically, there's a bunch of retail stocks that have a worrisome level of sales exposure to China. Wells Fargo recently compiled a list of retail stocks in their coverage universe that have exposure to China. The takeaway? There's more than a handful of retail stocks with double-digit sales exposure to China. * 10 Virtual Assistants for the Future of Smart Homes With that in mind, let's take a look at seven retail stocks with worrisome exposure to China. Source: Shutterstock ### Adidas (ADDYY) Sales Exposure to China: 18% Near-term outlook: Although this was once the hottest athletic apparel company in the world, Adidas (OTCMKTS:ADDYY) is now facing numerous headwinds that plague the stock's near-term outlook. First and foremost, the company has double-digit sales exposure to China, which is by far the most exposure among big athletic apparel brands. Second, the iconic brand is finally losing steam amid rising competition, and that is showing up in slower sales growth numbers. This trend will persist, and it will keep ADDYY stock lower for longer. Long-term outlook: The long-term outlook for Adidas stock is much more favorable than its near-term outlook. Trends in fashion change all the time. This current trend wherein Adidas is losing steam will not last forever. Eventually, it will be replaced by another trend where Adidas is back in fashion. Big picture, this is a long-term winner that you want to buy when the trend is your friend, and sell when the trend goes the other way. Source: priceminister via Flickr ### Tiffany (TIF) Sales Exposure to China: 16% Near-term outlook: The near-term outlook for shares of Tiffany (NYSE:TIF) is not good. Not only does the company have 16% exposure to China's rapidly slowing economy, but TIF also sells the sort of premium product (jewelry) that consumers can go a long time without buying if times get tough. Indeed, during prior economic slowdowns (2015-16 and 2008-09), TIF stock dramatically underperformed the market due to the company's economic slowdown sensitivity. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors Long-term outlook: The long-term outlook for TIF stock is much more favorable. Although near-term demand is sensitive to economic slowdowns, long-term demand is stable due to the enduring and timeless appeal of jewelry. Also, within this enduring appeal jewelry industry, Tiffany has separated itself among millennial buyers, thus giving the company a healthy long-term demand outlook. In five years, I think $6.50 in EPS in achievable, driven by low single-digit revenue growth and some margin expansion. A normal 20 multiple on that implies a long-term price target of $130, representing healthy upside in a multi-year window. Source: Shutterstock ### Nike (NKE) Sales Exposure To China: 15% Near-term outlook: At first glance, the near-term outlook for Nike (NYSE:NKE) stock isn't all that great. A 15% sales dependence to the rapidly slowing China economy is not good. But, we just heard from Nike two weeks ago, and they said everything was great in China. Sales growth in China accelerated from 20% in Q1, to 31% in Q2. Thus, whatever is affecting Apple in China, is not affecting Nike. This company is firing on all cylinders in China, and everywhere else too (growth accelerated across all geographies last quarter). Thus, the near-term outlook for NKE stock is actually quite favorable. Long-term outlook: The long-term outlook for Nike stock is also quite favorable. Over the past twenty years, Nike has time and time again flexed its muscles as the most dominant and unparalleled juggernaut in the athletic apparel industry. They've squashed competitive threats, continually come out with the best products, and always sign the best athletes. Also, this entire space is growing rapidly due to the widespread emergence of healthy and active lifestyle trends. Altogether, this is a very solid company with the potential to hit $5 EPS in five years. A historically average 25 multiple on that implies a long-term price target of $125. That's almost double the current price. Source: McArthurGlen Designer Outlet via Flickr ### Skechers (SKX) Sales Exposure to China: 14% Near-term outlook: The near-term outlook for Skechers (NYSE:SKX) stock is mixed. On one hand, you have a company with slowing growth rates and struggling margins that have sizable exposure to the slowing Chinese economy. On the other hand, you have a company who might win in a slower growth environment due to its lower-priced shoes, and you have a stock that is dirt cheap and rubbing up against a critical support level at $20. Thus, while a near-term bounce-back looks unlikely, further downside also seems fundamentally and technically limited. * 7 Dow Jones Stocks Set to Charge Higher Long-term outlook: The long-term outlook for Skechers stock is quite promising at current levels. Skechers has carved out a solid niche for itself in the global athletic apparel industry as a leading provider of high quality, mid-priced athletic apparel shoes for the largely off-trend demographic. This strategy has powered consistent double-digit global sales growth over the past several years, and continues to power high single-digit sales growth today. This growth has also happened alongside healthy gross margin expansion. As such, if these trends remain intact over the next several years, SKX stock is simply too cheap here at 11X forward earnings, and will ultimately head higher in a multi-year window. Source: Joe King via Flickr (Modified) ### Fossil (FOSL) Sales Exposure to China: 12% Near-term outlook: The near-term outlook for traditional watch giant turned wearables company Fossil (NASDAQ:FOSL) is actually quite favorable. Apple warned about slowing iPhone demand. But, they also said that Apple Watch demand remained robust. That is a bullish read for Fossil, whose entire turnaround narrative is predicated on robust growth in the hybrid smartwatch category. Recent numbers from Fossil indicate that this trend remains alive and well. But, the stock has been beaten up in a big way over the past few months due to concerns that the hybrid smartwatch market is struggling. Fossil's next quarterly numbers should ease those fears, and cause a pop in FOSL stock. Long-term outlook: The long-term outlook here is favorable, too. Fossil used to be the face of the huge traditional watch market. That market has shrunk considerably due to the onset of smartwatches. While smartwatch functionality is nice to have, traditional watch aesthetic will also likely never go away. As such, Fossil is making a comeback through hybrid smartwatches, which is essentially the integration of traditional watch aesthetic with smartwatch functionality. This market will be very big one day, and Fossil will be at the head of it. As such, FOSL stock should head higher in a long-term window from here. Source: Shutterstock ### Capri (CPRI) Sales Exposure to China: 8% Near-term outlook: The near-term outlook for global luxury brand Capri (NYSE:CPRI) has been quite negative. But, that may be changing soon. To be sure, this company does have an 8% sales exposure to China, and its global suite of brands (Michael Kors, Versace and Jimmy Choo) have broad exposure to the global consumer markets. But, the biggest weight on this stock has been its balance sheet, which has been increasingly pressured by the threat of rising interest rates. With the global economy rapidly cooling, it is unlikely rates head higher any time soon. As such, this stock's biggest risk may be moving into the rear-view mirror, and CPRI stock could be due for a near-term bounce back. * 7 High-Risk Chinese ETFs to Avoid ... For Now Long-term outlook: At current levels, the long-term outlook for CPRI stock is favorable as healthy long-term fundamentals are set to converge on what is a hugely discounted valuation. CPRI stock currently trades at just over 7X forward earnings. That is dirt cheap. But, between Michael Kors, Versace, and Jimmy Choo, Capri has amassed a portfolio of luxury brands with enduring appeal. Thus, long-term, this company should be able to grow revenues, margins, and profits at a healthy rate. None of that is priced in at 7X forward earnings, meaning the stock has huge firepower in a long-term window. Source: Shutterstock ### Under Armour (UAA) Sales Exposure To China: 5% Near-term outlook: The near-term outlook for athletic apparel company Under Armour (NYSE:UAA) is favorable, despite its 5% sales exposure to China. The rationale for this favorable outlook is that all the bad news has already been priced into the stock. At one point in time in early December, this was a $25 stock. Just a month later, UAA stock has plunged more than 30% to $17. Now, the RSI hovers right around oversold territory, the valuation is as cheap as its been in several years, and sentiment is awful. In other words, this stock is due for a near-term bounce back. Long-term outlook: The long-term outlook isn't so great. At its core, Under Armour is an athletic apparel brand that failed to branch into the lifestyle market, and is instead doubling down on the performance market. This re-focus is the right move for stability and profitability. But, it also limits this company's potential upside in a long-term window. As such, this company appears to have runway to $1.15 in EPS within five years. A Nike-average 25 forward multiple on that implies a four-year forward price target of $28. That's good, but not great, upside in a four to five year window. As of this writing, Luke Lango was long AAPL, NKE, SKX, UAA and CPRI. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy for Winning the Online Battle * The 7 Best Stocks in the Entrepreneur Index * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 7 Retail Stocks With Worrisome Exposure to China appeared first on InvestorPlace.
For the past few months, we’ve been tracking the most actively traded securities on OTC Markets in terms of dollar volume. Just as we saw in October , a volatile market in December caused investors to ...
When Apple slashed its sales forecast for the holiday quarter on Jan. 2, laying most of the blame on weakness in China, the news sent a shudder through financial markets. Apple's announcement renewed anxieties about the slowdown of the world's second-largest economy, read as a signal that the countless companies which have come to rely…
Few things seem to slow Nike (NYSE:NKE). The Beaverton, Oregon-based athletic apparel and equipment maker has maintained an impressive growth rate despite considerable market headwinds. Though NKE stock has fallen somewhat during the downturn, it has so far avoided a bear market. Yes, Nike stock has fallen about 16% from its 52-week high in September and while the current downturn will create a buying opportunity, investors need to consider how the overall market affects NKE stock before opening a position. ### Nike's Growth Remains Strong Despite the recent market downturn, Nike remains a resilient brand, so much so that it has become the most valuable brand in the athletic apparel business. Lucrative endorsement deals from the likes of Michael Jordan and LeBron James have helped to make Nike products some of the most sought-after athletic apparel in the world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 A-Rated Safety Stocks for a Grossly Oversold Market Furthermore, if the last earnings report serves as an indication, demand in all corners of the world remains strong. The Colin Kaepernick kneeling controversy, a bear market, and a trade war have done little to slow Nike down. All of Nike's regions across the world saw double-digit revenue increases in the last quarter. Moreover, digital channel sales grew by 70% over the previous two years. Also, as a result of branding successes, it plans several flagship store openings in many of the world's major markets. ### Don't Expect a Low Multiple on NKE Stock This likely helps to explain why NKE stock has maintained an elevated valuation for the last several years. With the current Nike stock price at around $73 per share, it trades at a forward price-to-earnings (PE) ratio of 28.5. And while Under Armour (NYSE:UAA, NYSE:UA) trades at a much higher multiple and Adidas (OTCMKTS:ADDYY) at a seemingly discounted forward PE in the low 20s, Nike has also outcompeted them on nearly every front. Such troubles do not make a company worthwhile merely because they support a lower multiple. Also, investors buying NKE stock now are getting a relative discount. The current multiple for NKE comes in below the stock's five-year average PE of 32.8. However, despite this "sale price," I would urge caution. The overall market continues to struggle. That swoon depressed Nike's stock price, and it could push the equity further down. This does not mean that NKE stock will become inexpensive. The latest earnings report showed the strength of the Nike brand continues to endure. Investors should also note that during the depths of the financial crisis, the average PE always stayed above 20. * 10 Oversold Stocks Due for a Bounce Still, it could fall further without testing these historic lows. The lowest average PE ratio over the last five years came in at 22.9. At today's profit levels, that would take the stock to just over $60 per share, its price in late 2017. Time will tell how far NKE falls, but until the overall market begins to improve, I would recommend holding out for a lower price on Nike stock. ### Bottom Line on NKE Stock Nike stock remains a long-term winner, but I would not expect it to rise until the overall market turns around. The economic headwinds over the last year have done little to affect the performance of Nike as a company. Since NKE stock has fallen along with the overall market, I don't expect the shares to turn around without improvements in the S&P 500 index. Current owners can still take solace in the resilience of Nike stock. Even if the equity continues to slip, it won't be fast or dramatic. Moreover, when it does recover, the shares will likely lead the way in resuming the gains its investors have long enjoyed. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post Despite Its Brand Strength, Nike Stock Will Follow the S&P 500 appeared first on InvestorPlace.
In the last three years, Adidas (OTCMKTS:ADDYY) has done that bit the best, as ADDYY stock has been the only one of its peers to outperform the market in that time. The athletic shoe and apparel space has four big publicly traded companies: Adidas, Nike (NYSE:NKE), Under Armour (NYSE:UAA), and Skechers (NYSE:SKX). In that three period — and despite secular tailwinds in athletic apparel adoption — shares of Skechers and Under Armour have fallen by 25% or more.
Alabama, Clemson, Notre Dame, and Oklahoma will battle in the College Football Playoff on Saturday. But as the games heat up, a different contest will unfold between three corporate adversaries: Nike, Adidas, and Under Armour.
If you are currently a shareholder in adidas AG (FRA:ADS), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. Read More...
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains takes a look at some of the best sports retail stocks to buy in 2019, far beyond Nike (NKE) and other giants.
Nike (NKE) stock soared over 8% Friday after the sportswear giant posted better-than-expected quarterly financial results Thursday. So, let's take a look at where Nike performed the best and dive into some of what we learned from the company's earnings call.
Nike earnings unexpectedly increased in fiscal Q2 earnings as revenue also easily topped views, sending Nike stock up sharply late Thursday.
Attendance is at an all-time high; ticket revenue is up; and the MLS Cup drew a record number of eyeballs. Read about how MLS is on fire.
Nike (NYSE:NKE) stock is due to report earnings after the bell on Dec. 20, and the result could save Christmas. Technicians are all lined up against it like Scrooges before a Christmas goose, with talks of a “death cross” and a “bear market” in the stock. Back when my kids were small, I always bought Nikes at a discount outlet, and that’s where Nike stock is as trade opens Dec. 20 — at a discount.
Under Armour stock has been one of the best performers in the market this year. Before a recent pullback, UAA stock had risen near-60% this year — the fifth-best performance in the S&P 500, narrowly behind fellow turnaround play Chipotle Mexican Grill (NYSE:CMG). The company has had a good year, admittedly.