Nike (NKE) shouldn’t really need much of an introduction to consumers and investors alike as their
famous swoosh has come to dominate the sports apparel world, while NKE has been an amazing large cap stock as well. In fact, Nike’s brand is currently the
most valuable sports one in the world while it is in the top 20 overall, while it has risen to a $100 billion company with gains of nearly 40% in the past
52 week period alone.
Yet while NKE has gone on an amazing run, there is plenty of reason to believe that the trend isn’t done yet. There are still several avenues open for
growth for the apparel giant while analysts definitely believe in NKE’s winning streak continuing, at least if we look to recent earnings estimates on the
stock.
NKE estimates
Earnings estimates are moving nearly universally higher for NKE stock in both the current year and next year time frames. We have also seen a decent move
in the magnitude higher as the current year estimate has jumped by 10 cents a share in the past two months while the following year has gone higher by 20
cents, from $4.70/share to $4.90/share. This bakes in two more years of double digit EPS growth projections for NKE, pretty impressive for an already giant
company.
And before you start to worry about NKE coming through at earnings season, consider some of its recent reports including the past quarter where it beat
estimates by over 12%. In fact, NKE has beaten estimates by an average of over 10% in the past four quarters while it hasn’t missed the consensus in
literally years.
Other Factors & Bottom Line
Nike has a very ambitious growth plan that includes $50 billion in revenue by the end of
fiscal 2020. This includes over 20 billion dollars in North American sales, along with $7 billion in e-commerce sales as the company ramps up its
direct-to-consumer operations.
So with these long term growth prospects, a great history at earnings season, and an extremely robust consumer, it isn’t hard to see why NKE has a Zacks
Rank #1 (Strong Buy) even after its recent run. So if you are looking for a top consumer stock in what is a quickly growing industry, look no further than
the gold-standard of Nike itself as it will be tough to unseat this apparel king as it continues with its rapid expansion plan that looks to give investors
huge returns as well.
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NIKE INC-B (NKE): Free Stock Analysis Report
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