Nike Stock Story

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NKE
 Stock
  

USD 118.06  1.74  1.50%   

By Ellen Johnson
Macroaxis Story
Nike Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 6.86 Billion. The current year Invested Capital is expected to grow to about 37.8 B, whereas Revenue Per Employee is forecasted to decline to about 666.2 K. The basic objective of this story is to give shareholders our perspective on Nike for July. We will forecast Nike value for shareholders.
Published over a month ago
View all stories for Nike | View All Stories

Nike (NYSE:NKE) is to drop even more in July

The company secures a Beta (Market Risk) of 1.542, which conveys a somewhat significant risk relative to the market. Let's try to break down what Nike's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Nike will likely underperform. Even though it is essential to pay attention to Nike Inc price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Nike exposes twenty-one different technical indicators, which can help you to evaluate its performance. Nike Inc has an expected return of -0.24%. Please be advised to verify Nike Inc jensen alpha, as well as the relationship between the potential upside and skewness to decide if Nike Inc performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Nike Inc. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Nike

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Nike's 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.
Hype
Prediction
Details
Intrinsic
Valuation
Details
22 Analysts
Consensus
Details
Earnings
Estimates (13)
Details
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

A Deeper Perspective On Nike

Nike Inc exhibits very low volatility with skewness of -0.08 and kurtosis of -0.41. However, we advise investors to further study Nike Inc technical indicators to make sure all market info is available and is reliable. 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 Implied Volatility

Nike's implied volatility exposes the market's sentiment of Nike Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nike's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nike stock will not fluctuate a lot when Nike's options are near their expiration.

Returns Breakdown

18.59
Return on Assets
28.94
Return on Investment
Return on Investment28.94
Return on Assets18.59
Return on Equity53.42
Return Capital0.23
Return on Sales0.13

Can Nike build up on the latest surge?

Latest Risk Adjusted Performance is up to -0.1. Price may dip again. Nike Inc exhibits very low volatility with skewness of -0.08 and kurtosis of -0.41. However, we advise investors to further study Nike Inc technical indicators to make sure all market info is available and is reliable. 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 Implied Volatility

Nike's implied volatility exposes the market's sentiment of Nike Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nike's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nike stock will not fluctuate a lot when Nike's options are near their expiration.

The Current Takeaway on Nike Investment

Although some firms in the footwear & accessories industry are either recovering or due for a correction, Nike may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
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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