Nike (NKE, $153.99) beats fiscal Q4 earnings and sales expectations
On Thursday, Nike reported fiscal fourth-quarter earnings that surpassed analysts’ expectations, on the back of record revenue in North America.
The sneaker maker’s earnings came in at 93 cents, crushing the 51 cents expected by analysts polled by Refinitiv.
Revenue rose to $12.34 billion from $6.31 billion a year earlier, exceeding estimates for $11.01 billion. Digital sales grew +41% year-over-year, and were up +147% compared with the same period in 2019.
In North America, the company’s largest market, sales more than doubled to a record $5.38 billion from a year earlier when the retail industry was hard hit by the Covid pandemic.
Sales in Greater China rose +17%. “Building on our 40-year history in Greater China, we continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways,” CFO Matt Friend said during a post-earnings conference call.
For fiscal year 2022, Nike is projecting revenue to grow a low double-digit percentage, and to exceed $50 billion. Analysts were expecting revenue of $48.5 billion.
NKE in downward trend: 10-day moving average broke below 50-day moving average on May 17, 2023
The 10-day moving average for NKE crossed bearishly below the 50-day moving average on May 17, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 10, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NKE as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NKE turned negative on May 04, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
NKE moved below its 50-day moving average on May 11, 2023 date and that indicates a change from an upward trend to a downward trend.
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 May 31, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
NKE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
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 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 (11.136) is very high in comparison to the industry average of (2.949). P/E Ratio (30.303) is within average values for comparable stocks, (24.483). Projected Growth (PEG Ratio) (1.754) is also within normal values, averaging (1.768). Dividend Yield (0.012) settles around the average of (0.043) among similar stocks. P/S Ratio (3.284) is also within normal values, averaging (1.655).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a maker of athletic footwear and apparel
Industry ApparelFootwear
NKE and
Correlation & Price change
A.I.dvisor indicates that over the last year, NKE has been closely correlated with UAA. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if NKE jumps, then UAA could also see price increases.
