Nike Story

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NKE -- USA Stock  

USD 139.35  2.26  1.60%

It looks as if Nike will continue to recover much faster as its share price surged up 1.56% today. The company's current daily volatility is 1.62 percent, with a beta of 0.4 and an alpha of 0.18 over DOW. As many baby boomers are still indifferent towards corona opportunity, it makes sense to digest Nike Inc. We will look into some reasons why it is still possible for Nike to maintain above-average margins while minimizing volatility.
Published over a month ago
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Breaking down Nike (NYSE:NKE) volatility dip
Nike Inc has roughly 9.48 B in cash with 2.97 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.04. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Nike has an asset utilization ratio of 174.66 percent. This indicates that the company is making $1.75 for each dollar of assets. An increasing asset utilization means that Nike Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Nike, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Nike along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
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 important is Nike's Liquidity

Nike financial leverage refers to using borrowed capital as a funding source to finance Nike Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nike financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nike's total debt and its cash.

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

Nike Correlation with Peers

Investors in Nike can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Nike Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Nike and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Nike is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Nike for more details

Breaking down Nike Indicators

Nike appears to be very steady, given 1 month investment horizon. Nike Inc has Sharpe Ratio of 0.22, which conveys that the firm had 0.22% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Nike, which you can use to evaluate future volatility of the firm. Please exercise Nike Inc Risk Adjusted Performance of 0.1671, mean deviation of 1.07, and Downside Deviation of 1.29 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Nike may start a relapse in January

The kurtosis is down to 11.14 as of today. Nike Inc has relatively low volatility with skewness of 1.84 and kurtosis of 11.14. 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 many of the other players 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. While some shorter-term oriented shareholders may not share our view, we believe it may be a good time to take over new shares of 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 Ellen Johnson 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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