Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
UK House Prices Momentum Forecast 2019 - 18th Dec 18
Will US Government Shutdown Cause The Stock Market To Crash? - 18th Dec 18
The Coming Financial Storm - 18th Dec 18
Jeff Gundlach thinks that a Stocks Bear Market has started. Is he Right? - 18th Dec 18
Gold’s Not An Investment – You Won’t Get Rich - 17th Dec 18
Stock Market At Medium-Term Lows, Which Direction is Next? - 17th Dec 18
This Stock Will Drive America’s 5G Buildout - 17th Dec 18
Stock Market Turn In The Tide - Have a Happy Bear Market! - 17th Dec 18
How A NASA Scientist Could Trigger The Next Cannabis Boom - 17th Dec 18
iShares Russell 2000 IWM Leading Stock Market Decline - 17th Dec 18
Where is the Dow Stock Market Santa Rally? - 17th Dec 18
With Weaker Climate Consensus, Expect Elevated Climate Change - 16th Dec 18
SMIGGLE Advent Calendar 2018 UK Contents - What You Get Look Inside Review - 16th Dec 18
Is there a Lump of Coal in Santa's Stock Market Bag? - 16th Dec 18
This Market Will Drive Gold in 2019… - 16th Dec 18
Gerald Celente:Central Banks Can’t Stop a 2019 Debt Disaster - 16th Dec 18
Gold Stocks Triple Breakout - 15th Dec 18
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18
Stock Market Topping Formation as Risks Rise Around the World - 11th Dec 18
The Amazing Story of Gold to Gold Stocks Ratios - 11th Dec 18
Stock Market Medium term Bullish, But Long Term Risk:Reward is Bearish - 11th Dec 18
Is a Deleveraging Event about to Unfold in the Stock Market? - 11th Dec 18
Making Money through Property Investment - 11th Dec 18
Brexit: What Will it Mean for Exchange Rates? - 11th Dec 18
United States Facing Climate Change Severe Water Stress - 10th Dec 18
Waiting for Gold Price to Erupt - 10th Dec 18
Stock Market Key Support Being Re-Tested - 10th Dec 18
May BrExit Deal Tory MP Votes Forecast, Betting Market Analysis - 10th Dec 18
Listen to What Gold is Telling You - 10th Dec 18
The Stock Market’s Long Term Outlook is Changing - 10th Dec 18
Palladium Shortages Expose Broken Futures Markets for Precious Metals - 9th Dec 18
Is an Inverted Yield Curve Bullish for Gold? - 9th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

Nike - The One Stock that Always Seems to Keep on Rising

Companies / Company Chart Analysis Jul 03, 2013 - 05:11 PM GMT

By: Profit_Confidential

Companies

Mitchell Clark writes: There are lots of benchmark stocks, but NIKE, Inc. (NKE) is an incredibly important one in retail.
It’s actually quite surprising that such a mature brand can continue to do as well as it does. Not only is the company succeeding operationally, but it continues to be an excellent stock market investment.


The company’s earnings results in the first quarter of this year were very good, and there’s been some worry that second-quarter numbers would be soft, commensurate with all the economic data we have been getting.

But that was not the case as the company’s second-quarter earnings were excellent.

Earnings season is always the most important time of year, and it certainly helps to divert investor attention from all the worries in the world. There’s been a real focus on what the Federal Reserve is going to do with quantitative easing. As odd as this may be, the stock market went up on weaker economic data in the hopes that quantitative easing would continue through to 2014.

NIKE said that its fiscal fourth-quarter sales grew seven percent to $6.7 billion, or nine percent on a currency-neutral basis.

The company experienced growth in all geographic regions except for Western Europe and China. Sales were stronger for running, basketball, and men’s and women’s training shoes, offsetting slightly weaker sales in sportswear, action sports, and soccer.

Earnings grew an impressive 25% to $696 million. With a two-percent reduction in average common shares outstanding, diluted earnings per share grew 27% to $0.76. This is an excellent performance from such a mature brand.

NIKE’s stock chart is featured below:


Chart courtesy of www.StockCharts.com

NIKE has proven to be a solid equity market investment. According to the company’s history, it’s never down for long.

Similar to the company’s first quarter, the standout in NIKE’s latest earnings report was its strength in the North American market. Footwear, representing about half of the company’s total sales in the North American market, grew seven percent, while apparel sales grew 22%, and equipment grew 24%.

Also noteworthy was the company’s huge increase in its cash balance, growing 44% to $3.34 billion over the comparable quarter.

The company has been steadily increasing its annual dividends over the last five years. The huge increase in NIKE’s cash balance suggests another quarterly increase is likely this year.

NIKE has now doubled in value on the stock market since 2010, not including its dividends. The company’s long-term stock market performance is exemplary and history suggests that an investment in NIKE may be a worthwhile long-term endeavor.

While no business can provide absolute consistency in both revenue and earnings growth, NIKE has been able to execute its business plan with remarkable effect. (See “How Five Hundred Bucks and a Handshake Created a Colossal Stock Market Winner.”)

The company experienced a slow period between 1997 and 2004, but all stocks go through cyclical enthusiasm from Wall Street, even while business conditions continue to grow.
I always follow NIKE as a benchmark on consumer confidence. The company is fully priced on the stock market, but it always is.

Source -http://www.profitconfidential.com/stock-market/the-one-stock-that-always-seems-to-keep-on-rising/

Mitchell Clark, B.Comm. for Profit Confidential

http://www.profitconfidential.com

We publish Profit Confidential daily for our Lombardi Financial customers because we believe many of those reporting today’s financial news simply don’t know what they are telling you! Reporters are trained to tell you the news—not what it can mean for you! What you read in the popular news services, be it the daily newspapers, on the internet or TV, is the news from a “reporter’s opinion.” And there’s the big difference.

With Profit Confidential you are receiving the news with the opinions, commentaries and interpretations of seasoned financial analysts and economists. We analyze the actions of the stock market, precious metals, interest rates, real estate and other investments so we can tell you what we believe today’s financial news will mean for you tomorrow!

© 2013 Copyright Profit Confidential - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules