Nike Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>NIK</div>
NKE -- USA Stock  

USD 140.72  0.58  0.41%

While some traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to digest Nike Inc against current market trends. As we have suggested previously, Nike is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. Nike Inc moves indifferently to market moves. The returns on investing in Nike and the market returns of the last few months appear uncorrelated. Sound basic indicators of the firm may indicate signs of shorter-term price drift for shareholders. Nike Inc is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 22nd of September 2020.
Published over three months ago
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Our latest technical analysis of Nike Inc (NYSE:NKE)
The company's average rating is Buy from 26 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Nike market sentiment investors' perception of the future value of Nike. Let us look at a few aspects of Nike technical analysis. The company has Net Profit Margin of 6.79 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 11.32 %, which entails that for every 100 dollars of revenue, it generated 0.11 of operating income.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Nike Inc. In general, we focus on analyzing Nike stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Nike's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Nike's intrinsic value. In addition to deriving basic predictive indicators for Nike, we also check how macroeconomic factors affect Nike price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Nike's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Nike in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Nike. Your research has to be compared to or analyzed against Nike's peers to derive any actionable benefits. When done correctly, Nike's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Nike Inc.

How does Nike Stands against Peers?

Analyzing Nike competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Nike across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Nike Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Nike, but it might be worth checking our own buy vs. sell analysis

Closer look at Nike Variance

Nike Inc has current Variance of 3.46. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
3.46
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Nike Variance to its closest peers:
NKE
FL
CAL
FORD
NKE3.46
FL11.72
CAL30.79
FORD25.78

Will Nike dip impact its fundamentals?

The coefficient of variation is down to 785.25 as of today. Nike Inc has relatively low volatility with skewness of -1.01 and kurtosis of 3.81. 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.

Our Conclusion on Nike

Although other companies within the footwear & accessories industry are still a little expensive, even after the recent corrections, Nike may offer a potential longer-term growth to shareholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Nike nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nike.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Nike Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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