Nike, Inc. is the iconic maker of athletic footwear and apparel that carries the famous Swoosh logo. Nike is a component of the Dow Jones Industrial Average and is the first company on the index to report quarterly results, but its report covers the three-month period that ended November, not December.
Nike stock closed Wednesday at $63.59, up 25.1% year to date, which matches the performance of the Dow 30. The stock is in bull market territory at 26.3% above its 52-week low of $50.35 set on Oct. 12, and it set its 52-week high of $65.18 on Dec. 19, which was a daily “key reversal.” A “key reversal” occurs when a stock sets a cycle high and then closes below the prior day’s low.
Analysts expect Nike to post earnings per share of between 39 cents and 44 cents when it reports results after the closing bell on Dec. 21. Some analysts on Wall Street recently raised their price targets to $68 to $71 per share versus the stock’s all-time intraday high of $68.19 set on Dec. 23, 2015. Traders and investors should keep in mind that, from that high, the stock crashed by 28.1% to as low as $49.01 on Nov. 2, 2016. (See also: Nike Facing ‘Challenging Dynamics’: Goldman Sachs.)
Nike stock is not cheap, given its P/E ratio of 25.59 and puny dividend yield of just 1.10%. …read more
Read more here: Nike Kicks Off Earnings Season for the Dow 30