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Nike(NKE) plans to release its results after the close of Tuesday, and the cheerleaders of the community of analysts do not miss.
So: Nike easily outperformed the broader market this year, thanks to strong earnings, innovative products and continued popularity of "athleisure".
Now: The street says Tuesday's results should show continued strength.
Photo:
Alexander Rotker
Nike has been a winner in 2018: equities have risen more than 35% since the beginning of 2018, and analysts do not see the stock slowing anytime soon.
There are a number of factors behind the Nike series. The athleisure trend continues to grow (which is not surprising: who does not like a forgiving belt?), Especially in the millennia, which are becoming a force of consumption more and more important. Nike's brand is almost unmatched in space. The company has solid earnings, has been outraged by the recent controversy and has continued to launch innovative products that echo consumers.
So, while the shares have already been a great success, analysts are betting that the forthcoming fiscal first quarter results for Nike, expected after the close on Tuesday, will come on to add to the winning round.
"Our sector audits and discussions with Nike suggest that recent positive trends continued in the first fiscal quarter (gains in market share, lower haircut, resonance of new products, number of retailers citing Nike as a strategic priority in the second half of the year. 2018) "written Michael Binetti from Credit Suisse. He reiterated an outperformance rating and a price target of $ 90 on stocks and, although he believes earnings per share could be slightly higher than expectations, at 61 cents he thinks that stocks are cleaner to go from the front.
Volatility in China is worrisome and currency movements could also impact the quarter; but Binetti maintains that the picture remains clear. "We believe that Nike is about to realize one of the largest digital transformations in our space, which will allow it to challenge the historical limits of growth and profitability," he says.
Jim Duffy from Stifel Also reiterated a note from Buy on Nike today, and increased its price target from $ 6 to $ 96. He writes that his online checks reinforce his "confidence that the focus on revenue quality can support our gross margin expectations above consensus."
He writes that Nike offers fewer promotions, that its product line is moving towards a higher profit margin, and that gross margins are expected to increase. These positive forces come as his consumer surveys show positive consumer intentions for both sportswear and footwear, which is good news for Nike's North American business. This higher margin and higher yielding environment should allow Nike's valuation to increase, even after its recovery.
According to FactSet, Nike should record earnings of 63 cents per share in the first quarter for a turnover of $ 9.9 billion.
Nike's shares are down 1.2% to $ 84.52 on Monday. the SPDR S & P Retail ETF(XRT) is 1.1% lower at $ 50.78.
To make the connection
gap(GPS) is trying to get closer to the popularity of athletes … with men.
The retail trade should remain a winner, with analysts remaining optimistic about other segments ranging from luxury to discounters.
The market, like Nike, has also ignored China's concerns.
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