Nike Stock Analysis – Great Long-Term Upside Potential

Summary

  • NKE recently held its Investor Day in which it presented its strategy to improve results.
  • Game changing innovation is expected to contribute to improved margins.
  • Unlike many other companies, NKE is not using a significant amount of debt to financially engineer its stock price and EPS.
  • NKE is suitable for a risk averse investor seeking long-term growth and who is prepared to accept a low dividend yield.

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Nike, Inc. Stock Analysis – I See a Lot To Like Despite Margin Compression

Summary

  • This Nike, Inc. stock analysis is based on Q3 2017 financial results released March 21, 2017.
  • Nike reported strong Q3 2017 results although some investors have expressed concern about the deterioration in gross profit margin.
  • Changing consumer shopping habits is posing a huge challenge but this problem is not unique to NKE. NKE has far greater resources than its competitors to deploy toward addressing these challenges.
  • NKE’s Balance Sheet is like a fortress. It has sufficient Cash and Equivalents and Short -Term Investments to completely wipe out its Short-Term Liabilities.
  • NKE is currently valued fairly and does not present a bargain.

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