4-Star Stocks Poised to Pop: Nike
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, athletic apparel giant Nike (NYS: NKE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Nike's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Beaverton, Ore. (1964)|
|Market Cap||$42.2 billion|
|Trailing-12-Month Revenue||$21.8 billion|
|Management||Chairman/Co-Founder Phil Knight|
President/CEO Mark Parker
Vice President/CFO Donald Blair
|Return on Equity (Average, Past 3 Years)||20.3%|
|Cash/Debt||$3.7 billion / $518 million|
|Competitors||Deckers (NAS: DECK) |
Under Armour (NYS: UA)
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 2,168 members who have rated Nike believe the stock will outperform the S&P 500 going forward. These bulls include thebrokengroup and All-Star TheMiracleDJR, who is ranked in the top 10% of our community.
Earlier this year, thebrokengroup noted that Nike has "made inroads in every country." Our CAPS member concludes: "They are an amazing marketing machine that will continue to grow and dominate the field of helping athletes at all levels perform at their very best."
Currently, Nike currently sports a cheapish forward P/E of 15.8. That represents a discount to listed rivals Deckers (16.5) and Under Armour (32.4), as well as other athletic apparel plays like lululemon athletica (NAS: LULU) (32.7).
CAPS All-Star TheMiracleDJR expands on the outperform argument:
Just watch their commercial for the World Cup and you see they remain inspired despite their size. This is part of my strategy of combining picks which essentially are like owning a Monopoly. Nike Under Armour is like owning a $ printing press. I actually believe pressure from [Under Armour] is good for them, keeps them sharp.
What do you think about Nike, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Nike, Under Armour, and Lululemon, as well as creating a diagonal call position in Nike and a bear put spread position in Deckers. The Fool owns shares of Under Armour and Lululemon. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.