The Case for and Against NIKE, Inc. (NKE)

NIKE, Inc. (NKE) is an interesting player in the Consumer Goods space, with a focus on Textile – Apparel Footwear & Accessories. The stock has been active on the tape, currently trading at $62.55, down from yesterday’s close by -0.64%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

NIKE, Inc. (NKE) currently trades with a market capitalization of $102.70 Billion. That value represents a market adjusting for revenues that have been growing by 4.57 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $2.4 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.52 on a per share basis this quarter. Perhaps, that suggests something about why 1.69% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, NIKE, Inc. recorded a 52-week high of $65.18. It is now trading 2.63% off that level. The stock is trading $59.01 its 50-day moving average by -3.54%. The stock carved out a 52-week low down at $50.35.

In recent action, NIKE, Inc. (NKE) has made a move of +3.53% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.08% with $1.27 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NKE.

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