Nike Inc., the world's leading shoe and apparel company, designs, develops and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. Nike owns over 1 000 retail stores worldwide, with 36% of these stores in the United States.
The company is a leader in the athletic footwear and apparel space, with long-term growth being driven by product innovation and digital expansion, coupled with more personalised consumer experiences.
Technically, the price is trading above major support (see the black solid trendline on the main chart). A stock consistently staying above the support level suggests that there are enough buyers at that price, preventing it from going lower. If a stock remains above its key support level, it often indicates bullishness as many investors assume the stock is approaching, but not breaking (lower through) its support.
The stock is trading below its 200-day simple moving average (SMA) of ~$112.
Our bullish bias is supported by the start of upside price momentum, as indicated by the Moving Average Convergence Divergence (MACD) histogram, as well as the recent steep upwards trajectory of the On-balance Volume (OBV) indicator.
Share Information
| Share code | NKE |
|---|---|
| Industry | Consumer Durables & Apparel |
| Market Capital (USD) | 160.07 billion |
| One year total return | 16.09% |
| Return year-to-date | -9.27% |
| Current price (USD) | 105.18 |
| 52 week high (USD) | 131.31 |
| 52 week low (USD) | 87.89 |
| Financial year end | May |
| Closing paragraph | The share price is starting to recover, with various technical indicators pointing toward decent upside from current levels. |
Consensus expectations
(Bloomberg)
| FY23 | FY24E | FY25E | FY26E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 3.23 | 3.74 | 4.37 | 5.02 |
| Growth (%) | 15.63 | 16.89 | 14.93 | |
| Dividend Per Share (USD) | 1.33 | 1.42 | 1.56 | 1.73 |
| Growth (%) | 7.09 | 10.15 | 10.81 | |
| Forward PE (times) | 28.16 | 24.09 | 20.96 | |
| Forward Dividend Yield (%) | 1.35 | 1.49 | 1.65 | |
| Closing paragraph | Analysts are bullish on growth ahead amid easing supply-chain pressures as well as an overall improvement in economic conditions. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
HSTM - Profit Take (Close the position) |
AZO - Stop-loss (Close the position) |
MSFT - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 22.35 | 2556.06 | 331.32 |
| Current | 25.2 | 2416.54 | 330.53 |
| Movement | 12.8% | -5.5% | -0.2% |
| Summary text | The trade has reached our take-profit level and we closed the position. | The stock breached our stop-loss level, leading us to close the position. |
The development of a bullish flag pattern remains of interest. The stock is trading above its 200-day simple moving average. Fading downside momentum provides further support.
Our profit target is $365 with a trailing stop-loss at $318. Exit the position around 12 January 2024. |
| Share Name and position |
GILD - Buy (Continue to hold) |
COO - Buy (Continue to hold) |
HST - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 80.00 | 330.03 | 16.26 |
| Current | 78.15 | 321.51 | 15.77 |
| Movement | -2.3% | -2.6% | -3.0% |
| Summary text |
The development of a bullish flag pattern remains attractive. The stock is testing its 200-day SMA, with emerging upside momentum offering some support.
Our profit target is $97 with a trailing stop-loss of $73. Exit the position on 19 April 2024. |
The price is displaying upwards parallel support, and this remains of interest. Trade continues below the 200-day SMA, and we maintain our counter-trend strategy. Fading downside momentum is encouraging.
Our profit target is $369 with a trailing stop-loss of $314. Exit the position on 13 December 2023. |
Stability in the price with regular upswings, makes the stock attractive. The stock remains below its 200-day SMA but remains above the 200-week SMA. Fading downside momentum, though, is supportive.
Our profit target is $19 with a trailing stop-loss of $15.30. Exit the position around 20 December 2024. |
