Is Nike Stock a Good Investment?

Nike Investment Advice

NKE

To provide specific investment advice or recommendations on Nike Inc stock, we recommend investors consider the following general factors when evaluating Nike Inc. This will help you to make an informed decision on whether to include Nike in one of your diversified portfolios:

Examine Nike's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Nike's leadership team and their track record. Good management can help Nike navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Textiles, Apparel & Luxury Goods space and any emerging trends that could impact Nike's business and its evolving consumer preferences.
Compare Nike's performance and market position to its competitors. Analyze how Nike is positioned in terms of product offerings, innovation, and market share.
Check if Nike pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Nike's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Nike Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Nike Inc is a good investment.

Sell

Buy

Hold

Macroaxis provides unbiased advice on Nike Inc that should be used to complement current analysts and expert consensus on Nike. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Nike Inc is not overpriced, please verify all Nike Inc fundamentals, including its cash per share, price to earnings to growth, and the relationship between the gross profit and book value per share . Given that Nike Inc has a price to earning of 30.18 X, we recommend you to check Nike market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Buy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine Nike Stock

Researching Nike's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 2nd of December 2024. Nike Inc had 2:1 split on the 24th of December 2015.

To determine if Nike is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Nike's research are outlined below:

	Nike Inc generated a negative expected return over the last 90 days
	Over 82.0% of the company shares are owned by institutional investors
	On 1st of October 2024 Nike paid $ 0.37 per share dividend to its current shareholders
	Latest headline from bizjournals.com: Billionaire activist investor Bill Ackman purchases millions more in Nike shares

Nike Quarterly Accounts Payable

3.36 Billion

Nike uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Nike Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Nike's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	19th of March 2024 Upcoming Quarterly Report	View
	4th of July 2024 Next Financial Report	View
	29th of February 2024 Next Fiscal Quarter End	View
	4th of July 2024 Next Fiscal Year End	View
	30th of November 2023 Last Quarter Report	View
	31st of May 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Nike's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Nike's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2002-06-27	2002-05-31	0.09	0.1	0.01	11
2001-06-28	2001-05-31	0.07	0.08	0.01	14
2000-09-14	2000-08-31	0.09	0.1	0.01	11
2000-03-16	2000-02-29	0.06	0.07	0.01	16
1999-12-16	1999-11-30	0.04	0.05	0.01	25
1999-09-17	1999-08-31	0.08	0.09	0.01	12
1999-03-18	1999-02-28	0.05	0.06	0.01	20
1998-09-17	1998-08-31	0.06	0.07	0.01	16

Know Nike's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Nike is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nike Inc backward and forwards among themselves. Nike's institutional investor refers to the entity that pools money to purchase Nike's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Fmr Inc	2024-09-30	16.1 M
Goldman Sachs Group Inc	2024-06-30	14.7 M
Norges Bank	2024-06-30	14.2 M
Northern Trust Corp	2024-09-30	13.5 M
Wells Fargo & Co	2024-06-30	13.4 M
Alliancebernstein L.p.	2024-06-30	12.3 M
Ubs Asset Mgmt Americas Inc	2024-09-30	11.2 M
Legal & General Group Plc	2024-06-30	11 M
Bank Of America Corp	2024-06-30	10.9 M
Vanguard Group Inc	2024-09-30	110.5 M
Blackrock Inc	2024-06-30	91.5 M

Note, although Nike's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Nike's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 110.02 B.

Market Cap

27.03 Billion

Nike's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.15	0.15
Return On Capital Employed	0.24	0.30
Return On Assets	0.15	0.15
Return On Equity	0.40	0.41

The company has Net Profit Margin of 0.11 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.1 %, which entails that for every 100 dollars of revenue, it generated $0.1 of operating income.

Determining Nike's profitability involves analyzing its financial statements and using various financial metrics to determine if Nike is a good buy. For example, gross profit margin measures Nike's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Nike's profitability and make more informed investment decisions.

Nike's Earnings Breakdown by Geography

Please note, the presentation of Nike's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Nike's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Nike's management manipulating its earnings.

Evaluate Nike's management efficiency

Nike Inc has Return on Asset of 0.1065 % which means that on every $100 spent on assets, it made $0.1065 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3798 %, implying that it generated $0.3798 on every 100 dollars invested. Nike's management efficiency ratios could be used to measure how well Nike manages its routine affairs as well as how well it operates its assets and liabilities. At present, Nike's Return On Assets are projected to increase slightly based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.41, whereas Return On Tangible Assets are forecasted to decline to 0.15. At present, Nike's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 1.9 B, whereas Net Tangible Assets are forecasted to decline to about 12.4 B.

	Last Reported	Projected for Next Year
Book Value Per Share	9.51	9.98
Tangible Book Value Per Share	9.18	9.64
Enterprise Value Over EBITDA	23.19	11.66
Price Book Value Ratio	10.00	10.50
Enterprise Value Multiple	23.19	11.66
Price Fair Value	10.00	10.50
Enterprise Value	24.6 B	25.8 B

Understanding the management dynamics of Nike Inc allows us to gauge its ability to sustain growth and profitability. This comprehensive analysis aids in determining the stock's value.

Dividend Yield

0.0216

Forward Dividend Yield

0.0216

Forward Dividend Rate

1.6

Beta

1.035

Basic technical analysis of Nike Stock

As of the 21st of November, Nike secures the Risk Adjusted Performance of (0.07), mean deviation of 1.09, and Standard Deviation of 1.66. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nike Inc, as well as the relationship between them. Please verify Nike Inc variance and value at risk to decide if Nike Inc is priced some-what accurately, providing market reflects its recent price of 75.4 per share. Given that Nike Inc has information ratio of (0.16), we recommend you to check Nike's last-minute market performance to make sure the company can sustain itself at a future point.

Nike's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Nike insiders, such as employees or executives, is commonly permitted as long as it does not rely on Nike's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Nike insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Johanna Nielsen over six months ago

Disposition of 282 shares by Johanna Nielsen of Nike at 93.64 subject to Rule 16b-3

Nike's Outstanding Corporate Bonds

Nike issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Nike Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Nike bonds can be classified according to their maturity, which is the date when Nike Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	NIKE INC Corp Bond US654106AH65	View
	NIKE INC 3375 Corp Bond US654106AG82	View
	NIKE INC 2375 Corp Bond US654106AF00	View
	NIKE INC 3875 Corp Bond US654106AE35	View
	NIKE INC 3625 Corp Bond US654106AD51	View
	NIKE INC Corp Bond US654106AM50	View
	NIKE INC Corp Bond US654106AL77	View
	NIKE INC Corp Bond US654106AK94	View

View All Nike Corporate Bonds

Understand Nike's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Nike's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.07)
	Market Risk Adjusted Performance	(0.93)
	Mean Deviation	1.09
	Coefficient Of Variation	(941.31)
	Standard Deviation	1.66
	Variance	2.76
	Information Ratio	(0.16)
	Jensen Alpha	(0.20)
	Total Risk Alpha	(0.37)
	Treynor Ratio	(0.94)
	Maximum Drawdown	13.61
	Value At Risk	(2.49)
	Potential Upside	1.58
	Skewness	0.0362
	Kurtosis	7.19

	Risk Adjusted Performance	(0.07)
	Market Risk Adjusted Performance	(0.93)
	Mean Deviation	1.09
	Coefficient Of Variation	(941.31)
	Standard Deviation	1.66
	Variance	2.76
	Information Ratio	(0.16)
	Jensen Alpha	(0.20)
	Total Risk Alpha	(0.37)
	Treynor Ratio	(0.94)
	Maximum Drawdown	13.61
	Value At Risk	(2.49)
	Potential Upside	1.58
	Skewness	0.0362
	Kurtosis	7.19

Consider Nike's intraday indicators

Nike intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Nike stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0357
	Daily Balance Of Power	0.7584
	Rate Of Daily Change	1.03
	Day Median Price	74.06
	Day Typical Price	74.5
	Market Facilitation Index	2.69
	Price Action Indicator	2.37
	Period Momentum Indicator	2.04
	Relative Strength Index	42.13

Nike Corporate Filings

F4	15th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
F3	16th of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify
10Q	7th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	1st of October 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Nike time-series forecasting models is one of many Nike's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Nike's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Nike Stock media impact

Far too much social signal, news, headlines, and media speculation about Nike that are available to investors today. That information is available publicly through Nike media outlets and privately through word of mouth or via Nike internal channels. However, regardless of the origin, that massive amount of Nike data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Nike news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Nike relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Nike's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Nike alpha.

Nike Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Nike can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Nike Inc Historical Investor Sentiment

Investor biases related to Nike's public news can be used to forecast risks associated with an investment in Nike. The trend in average sentiment can be used to explain how an investor holding Nike can time the market purely based on public headlines and social activities around Nike Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Nike's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Nike and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Nike news discussions. The higher the estimate score, the more favorable the investor's outlook on Nike.

Nike Corporate Directors

Cathleen Benko	Independent Director	Profile
John Rogers	Independent Director	Profile
Peter Henry	Independent Director	Profile
Travis Knight	Director	Profile

When determining whether Nike Inc is a strong investment it is important to analyze Nike's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Nike's future performance. For an informed investment choice regarding Nike Stock, refer to the following important reports: