#4 - Nike (NYSE:NKE)
Nike (NYSE:NKE) was one of the pleasant surprises in the last earnings season. The company just did it by beating estimates on the top and bottom lines. This just goes to prove that premium brands can frequently support a premium valuation. And with a price/earnings ratio of 33.92 as of this writing, NKE stock is overvalued. However, for now, investors seem to be counting on the company’s ability to grow revenue and earnings at a sharp pace over the next five years.
One reason for the company’s growth is an expansion of its digital footprint. In its most recent quarter, digital sales were up 15% which was just slightly below its Nike Direct segment which came in at 15%.
And while Nike is not among the ranks of premium dividend stocks, it has increased its dividend in each of the last 21 years. The dividend ratio of just under 1% (0.95%) is not impressive. But paying out at just under 30% of earnings it’s a sustainable dividend.
About NIKE
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.
Read More - Current Price
- $77.40
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 13 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $95.86 (23.8% Upside)
