Nike Stock Buy Hold or Sell Recommendation

NKE -  USA Stock  

USD 156.42  1.18  0.75%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Nike Inc is 'Strong Buy'. Macroaxis provides Nike buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Nike positions. The advice algorithm takes into account all of Nike's available fundamental, technical, and predictive indicators you will find on this site.

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The advice is provided from Nike's buy-and-hold perspective. Additionally, see Nike Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Nike and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Nike Inc.

Execute Nike Buy or Sell Advice

The Nike recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Nike Inc. Macroaxis does not own or have any residual interests in Nike Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Nike's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell NikeBuy Nike
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Very StrongDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Nike Inc has a Risk Adjusted Performance of 0.1098, Jensen Alpha of 0.2721, Total Risk Alpha of 0.2387, Sortino Ratio of 0.2681 and Treynor Ratio of 0.328
Macroaxis provides trade recommendations on Nike Inc to complement and cross-verify current analyst consensus on Nike. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Nike Inc is not overpriced, please verify all Nike Inc fundamentals, including its price to earning, cash per share, price to earnings to growth, as well as the relationship between the gross profit and book value per share . Given that Nike Inc has a price to earning of 73.82 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.

Nike Trading Alerts and Improvement Suggestions

Nike Inc is unlikely to experience financial distress in the next 2 years
Over 84.0% of the company shares are owned by institutional investors
Latest headline from www.nasdaq.com: Nike Stock Looks Attractive At 160 - Nasdaq

Nike current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Nike analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Nike analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price184.13
Target Median Price185.00
Target High Price221.00
Recommendation Mean1.90
Number Of Analyst Opinions31
Target Low Price131.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Nike Returns Distribution Density

The distribution of Nike's historical returns is an attempt to chart the future uncertainty of Nike's future price movements. The chart of the probability distribution of Nike stock daily returns describes the distribution of returns around its average expected value. We use Nike Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Nike returns is essential to provide solid investment advice for Nike stock.
Mean Return0.30Value At Risk-1.72
Potential Upside1.80Standard Deviation1.98
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Nike historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Nike Stock 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.
Security TypeSharesValue
Vanguard Group IncCommon Shares104.6 M16.2 B
Blackrock IncCommon Shares89.9 M13.9 B
State Street CorpCommon Shares55.3 M8.6 B
Fmr LlcCommon Shares28 M4.3 B
Bank Of New York Mellon CorpCommon Shares25.9 MB
Alliancebernstein LpCommon Shares23.1 M3.6 B
Price T Rowe Associates IncCommon Shares21.1 M3.3 B
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 Cash Flow Accounts

201620172018201920202021 (projected)
Capital Expenditure(1.09 B)(1.03 B)(1.12 B)(1.09 B)(695 M)(749.87 M)
Depreciation Amortization and Accretion706 M774 M720 M1.12 B797 M789.74 M
Net Cash Flow or Change in Cash and Cash Equivalents670 M441 M217 M3.88 B1.54 B1.66 B
Issuance Purchase of Equity Shares(2.73 B)(3.52 B)(3.59 B)(2.18 B)564 M608.53 M
Issuance Repayment of Debt Securities1.75 B13 M(331 M)6.18 B(249 M)(255.55 M)
Payment of Dividends and Other Cash Distributions(1.13 B)(1.24 B)(1.33 B)(1.45 B)(1.64 B)(1.77 B)
Net Cash Flow from Financing(2.15 B)(4.83 B)(5.29 B)2.49 B(1.46 B)(1.57 B)
Net Cash Flow from Investing(1.01 B)276 M(264 M)(1.03 B)(3.8 B)(3.9 B)
Net Cash Flow Investment Acquisitions and Disposals118 M1.33 B850 M27 M(3.28 B)(3.36 B)
Net Cash Flow from Operations3.85 B4.96 B5.9 B2.48 B6.66 B5.69 B
Effect of Exchange Rate Changes on Cash(20 M)45 M(129 M)(66 M)143 M154.29 M
Share Based Compensation215 M218 M325 M429 M611 M659.24 M

Nike Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nike or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nike stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nike stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.27
β
Beta against DOW0.87
σ
Overall volatility
2.00
Ir
Information ratio 0.14

Nike Volatility Alert

Nike Inc has relatively low volatility with skewness of 5.03 and kurtosis of 34.49. However, we advise all investors to independently investigate Nike Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nike's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nike's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Nike Fundamentals Vs Peers

Comparing Nike's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Nike's direct or indirect competition across all of the common fundamentals between Nike and the related equities. This way, we can detect undervalued stocks with similar characteristics as Nike or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Nike's fundamental indicators could also be used in its relative valuation, which is a method of valuing Nike by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Nike to competition
FundamentalsNikePeer Average
Return On Equity32.69 %(0.31) %
Return On Asset8.79 %(0.14) %
Profit Margin8.90 %(1.27) %
Operating Margin13.48 %(5.51) %
Current Valuation210.62 B16.62 B
Shares Outstanding1.27 B571.82 M
Shares Owned by Insiders0.29 %10.09 %
Shares Owned by Institutions83.78 %39.21 %
Number of Shares Shorted12.81 M4.71 M
Price to Earning73.82 X28.72 X
Price to Book20.91 X9.51 X
Price to Sales6.48 X11.42 X
Revenue38.51 B9.43 B
Gross Profit16.24 B27.38 B
EBITDA5.19 B3.9 B
Net Income3.43 B570.98 M
Cash and Equivalents12.53 B2.7 B
Cash per Share7.93 X5.01 X
Total Debt12.85 B5.32 B
Debt to Equity1.08 %48.70 %
Current Ratio2.78 X2.16 X
Book Value Per Share7.55 X1.93 K
Cash Flow from Operations4.64 B971.22 M
Short Ratio2.10 X4.00 X
Earnings Per Share2.14 X3.12 X
Price to Earnings To Growth2.23 X4.89 X
Number of Employees75.4 K18.84 K
Beta0.85-0.15
Market Capitalization249.49 B19.03 B
Total Asset21.38 B29.47 B
Retained Earnings1.52 B9.33 B
Working Capital9.67 B1.48 B
Current Asset15.03 B9.34 B
   Acquisition by Chris Abston of 11800 shares of Nike subject to Rule 16b-3 [view details]

Nike Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Nike . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution243129.0
Daily Balance Of Power(0.24)
Rate Of Daily Change0.99
Day Median Price158.54
Day Typical Price157.83
Market Facilitation Index0.0
Price Action Indicator(2.71)

About Nike Buy or Sell Advice

When is the right time to buy or sell Nike Inc? Buying financial instruments such as Nike Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Nike investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Receivables4.27 B2.75 B4.46 B3.78 B
Inventories5.62 B7.37 B6.85 B5.53 B

Use Investing Ideas to Build Portfolios

In addition to having Nike in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Fama and French focuses on testing asset pricing under different economic assumptions. Trading theme has 61 constituents.
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Additionally, see Nike Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Nike Inc information on this page should be used as a complementary analysis to other Nike's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Nike Inc price analysis, check to measure Nike's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nike is operating at the current time. Most of Nike's value examination focuses on studying past and present price action to predict the probability of Nike's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nike's price. Additionally, you may evaluate how the addition of Nike to your portfolios can decrease your overall portfolio volatility.
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The market value of Nike Inc is measured differently than its book value, which is the value of Nike that is recorded on the company's balance sheet. Investors also form their own opinion of Nike's value that differs from its market value or its book value, called intrinsic value, which is Nike's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nike's market value can be influenced by many factors that don't directly affect Nike Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nike's value and its price as these two are different measures arrived at by different means. Investors typically determine Nike value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nike's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.