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Nike as stock pick has winner’s edge

in General Topics Mon Jul 10, 2017 5:17 am
by Search123 • 16 Posts

nike trainers mens uk So where do you go from here? Let me start by saying that I am the antithesis of your normal sports enthusiast. However, that is not a hindrance to recognizing successful companies in the athletic arena. Nike (NKE) with its famous swoosh trademark, would be my first suggestion in the competitive world of sports apparel ... and the shares are on sale. Notice I did not say anything about investing in companies that some parasitic investment letter, TV performer or commission based stock broker says you must buy right now. Believe me if they really knew what stocks to buy and when, they would be buying and not living off subscriptions, advertisers and commissions. There is nothing wrong with reading about or listening to investment ideas. It is when you act on those ideas without doing your own due diligence that losses occur. Act imprudently and the market will take its toll. When I wrote about the company a year ago, my earnings estimate for fiscal 2017 (fiscal year ended May 31) was $2.40 per share with a 12-month projected share price nike trainers womens uk of $61, for a 10 percent capital gain. There was also an indicated dividend yield of 1.15 percent. So how did the company do? Earnings for the year came in at $2.51 and the shares recently closed at $57.57, slightly below my forecast. Nike produced strong fiscal fourth-quarter earnings. For the quarter, revenues were higher, profits were up 5 percent, and the company’s gross margin increased. Inventory levels also came down 6 percent over the past 12 months.

nike trainers mens sale Nike’s launch of the Air VaporMax shoe cushioning platform saw solid demand and pointed the way forward for the company’s pipeline of new releases. The company’s direct-to-consumer business climbed 18 percent during the year thanks to a 30 percent increase in e-commerce sales. The longterm prospects for this channel appear to be excellent. Although the division represents only about one-third of Nike’s overall revenue, it was responsible for over two-thirds of the company’s growth in fiscal 2017. And aiding the direct-to-consumer business, of course, was Nike’s capitulation to Amazon. After years of holding out, Nike finally gave in. Nike recently announced it would begin selling its wares directly with the world’s largest online retailer after a decade of rebuffing Amazon’s invitations. At the same time, Nike made it clear it would begin selling only a limited nike trainers womens sale product assortment on Amazon as part of a pilot program. Currently there are thousands of Nike products available on Amazon but those sales are going to third-party resellers rather than Nike itself. For fiscal 2018, Nike is projecting mid- to high-single-digit growth, on pace with the past year’s 8 percent improvement. Gross margin is forecast to rise substantially due to moves toward higher-value direct sales. The increase in adjusted earnings is expected to push double digits during fiscal 2018.

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