Nike posted fiscal second quarter earnings and revenue that surpassed analysts’ expectation. However, the athletic footwear/apparel maker’s gross-margin fell shy of estimates, partly due to U.S.-China tariff war.
For its fiscal second quarter, Nike’s earnings came in at 70 cents a share, which exceeded analysts’ forecasts of 58 cents a share. The figure was alo higher than the year-ago quarter’s 52 cents .
Sales climbed +10% to $10.32 billion, compared to analysts’ estimates of $10.09 billion.
The company achieved its first-ever billion-dollar quarter, on the back of strong market for limited-edition Jordan sneakers as well as interest in other brands including women’s soccer.
Nike’s gross margin increased 20 basis points year-over-year to 44% in the quarter, missing analysts' estimates of 44.1%. Incremental tariffs in North America was cited as a major factor that raised the cost of goods sold and therefore hit the company’s bottom-line.
NKE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 35 cases where NKE's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where NKE's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 15, 2024. You may want to consider a long position or call options on NKE as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NKE just turned positive on April 12, 2024. Looking at past instances where NKE's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where NKE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NKE entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NKE's P/B Ratio (9.862) is slightly higher than the industry average of (3.484). P/E Ratio (27.224) is within average values for comparable stocks, (28.646). Projected Growth (PEG Ratio) (2.032) is also within normal values, averaging (1.937). Dividend Yield (0.015) settles around the average of (0.048) among similar stocks. P/S Ratio (2.762) is also within normal values, averaging (1.925).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. NKE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NKE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of athletic footwear and apparel
Industry ApparelFootwear