Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Following the better-than-expected bottom-line results for third quarter fiscal 2013, the shares of global sport equipment and apparel retailer, Nike Inc. (NKE - Analyst Report), soared to a new 52-week high of $60.25 on Friday, Mar 22. This Zacks Rank #3 (Hold) company closed trade at $59.53 on Mar 22, representing a solid return of 11.1% from the closing price of $53.90 on Mar 21, and gained about 15.3% year-to-date. Average volume of shares traded over the last 3 months stands at approximately 3,862,840.

Stocks’ Growth Drivers

An impressive record of beating the quarterly earnings expectations, sustained focus on brand building as well as initiatives to expand operation in the emerging markets are the major attributes that pushed the shares of Nike to a new high.

With respect to earnings surprise, Nike has surpassed the Zacks Consensus Estimate thrice in the trailing four quarters with an average surprise of 4.9%. The company witnessed an earnings surprise of 9.0% in the most recently reported third quarter of fiscal 2013.

On Mar 21, Nike came up with its third-quarter fiscal 2013 earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 67 cents. Moreover, the quarterly earnings climbed 19.7% year over year, resulting from increased revenues, improved margins, lower share count and reduced tax rate.

Nike's total revenue grew 9% year over year to $6,187 million primarily driven by robust performances across all geographical regions barring Greater China and Japan. Moreover, the company registered growth in all key categories excluding Sportswear and Action Sports.

Further, we believe Nike’s continued focus on expanding global footprint and augmenting market share via acquiring new brands bodes well for future growth. Simultaneously, the company has moved out of its underperforming brands such as Umbro and Cole Haan. We believe that this strategy will help Nike in focusing more on its faster growing brands while reducing costs.

Apart from Nike, other companies, which have hit 52-week high recently include, The Travelers Companies, Inc. (TRV - Analyst Report), Molson Coors Brewing Company (TAP - Analyst Report) and Target Corporation (TGT - Analyst Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%