Slam Dunk Stock Nike Surging

Nike (NYSE: NKE) looks like it may be the king of the courts again. Nike stock has been rampaging for the past couple years as the company has found traction and success with their new technologies (Dri-Fit, Flyknit, Flyweave, among others) and branding with superstars such as Jordan, LeBron James, Kobe and KD has cemented sales and an almost cult like following of their product. The mens world cup of the soccer last summer was a major catalyst for the Flyknit technologies, the highlight being Germany’s Mario Gotze scoring the game winning goal in the world cup finals wearing Nike Flyknits. If that wasn’t enough to help this Nike snowball grow, they just recently secured the rights to the NBA, WNBA and NBA D-League in an eight year, $1 Billion dollar deal. Investors have shown support by driving share price to 30x expected fiscal earnings.

2015 chart of Nike

Nike has some nice technical support with their stock right now as well. June 7 the stock started to test the 50 day moving average and after a couple sessions testing the 50 day MA Nike stock popped quite nicely and has continued to set a couple new 52 week highs this week and capped it off with a strong finish on Friday June 26th following the earnings report.

Here is a snap shot of those earnings:

  • 4th quarter revenues up 5% to $7.8 Billion; 13% growth excluding currency exchanges
  • 4th quarter diluted earnings per share up 26% to $0.98
  • Fiscal 2015 revenues up 10 percent to $30.6 billion; 14 percent growth excluding currency changes
  • Fiscal 2015 diluted earnings per share up 25 percent to $3.70
  • Worldwide futures orders up 2 percent; 13 percent growth excluding currency changes
  • Inventories as of May 31, 2015 up 10 percent

The full report can be found here at Nike.com

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The author of this post is Long Nike stock at the time of this post. Please do your own Due Diligence. This is not investment advice. The author reserves the right to trade Nike long or short without notice to the readers. The author has no business relationship with Nike just a shareholder.