Should You Buy Nike Stock At $122?

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[Note: NikeNKE
fiscal year ends in May]

nike stock (NYSE:NKE), a company that designs, develops and markets footwear, apparel, equipment and accessories, has grown 6% over the past twenty-one trading days (one month) and is currently valued at around $122. . It should be noted that the broader S&P500 has gained marginally over the past month. With its recent Q3 2022 earnings report, the company demonstrated its ability to grow despite the deteriorating supply chain conditions in China and the lockdown. It is notable that Greater China makes up about 20% of the company’s revenue and generates approximately 45% of operating profit. Recently in Q3, Nike sales in China fell 8% yoy, nevertheless, the company managed to post top-line growth of 5% yoy to $10.9 billion. However, its bottom line was down 4% yoy at 87 cents per share.

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Taking the last three quarters into account, Nike’s revenue grew 7% year over year to $34.5 billion, while profitability rose 9% year over year to $2.91 per share. The company is focused on protecting its margins which have grown 190 basis points to 46.3% in the first nine months of 2022. This is largely the result of Nike increasing its revenue at a rate higher than its cost of sales.

While the company’s share price is currently negatively affected by the supply chain crisis, inflation and the Russian invasion of Ukraine, we believe these problems are short-term and will eventually resolve themselves in the long term. Now, is NKE stock headed for a downtrend in the short term or is the upside potential? Based on our machine learning analysis of stock price trends over the past ten years, NKE stock has a 67% chance of growth in the next month (twenty one trading days). View our analysis NKE stock likely to rise for more information.

Calculation of ‘probability of occurrence’ and ‘probability of increase’ using data from last ten years

[1] Returns of 2.4% or more– day duration On 698 occasions out of 2516 (28%), Out of these 698 cases, 371 stocks increased in the next five days. (53%)

[2] A return of 12% or more a . more than ten day period on 33 occasions out of 2515 (1%), Out of these 33 cases, stock increased in the next ten days in 19 (58%)

[3] Return of 6.3% or more a . more than 21 day period On 612 occasions out of 2515 (24%), Out of these 612 cases, 407 stocks increased in the next twenty one days. (67%)

It’s helpful to see how its mates stack up. of comrades Shows how Nike’s stock compares against peers on metrics that matter. You’ll find other useful comparisons for companies across industries here. peer comparison,

With stock prices falling sharply across sectors, we are headed for a bear market for the first time since March 2020, when the COVID-19 outbreak triggered a market crash. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis.market crash comparison,

What if you’re looking for a more balanced portfolio instead? Our high quality portfolio And multi-strategy portfolio Has consistently outperformed the market since the end of 2016.

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Credit: www.forbes.com /

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