Insiders of this athletic apparel company is seeing double-digit growth, and also sees huge opportunities ahead in China, forecasting that its sales there will grow from $3.07 billion last year to $6.5 billion by fiscal year 2020.
Nike (NKE)
From 2 for 1 Stock Split Newsletter
I revisited several companies that have been considered in recent months and chose Nike (NKE) for one important reason—it has dropped in price by about 13% since it first appeared on our split list last November. Several of the metrics used to evaluate our candidates have adjusted significantly as a result of the market decline and, in the case of NKE, the stock is far more attractive now than it was over the last few months.
Nike makes shoes. Everybody knows that, and long-time readers may also know of my aversion to fad apparel and “fashion” companies. Nike is not a fad company. This is a huge business with a market cap around $100 billion. Nike is one of the world’s best-known brands, selling shoes, apparel, and equipment for every sport imaginable, along with more generic outdoor clothing and gear.
NKE has grown earnings at over 14% per year for the last five years, has a very strong balance sheet, pays a respectable dividend, and is quite a bit less volatile than the market. All of this was true last month and the month before, but the stock was just too expensive to earn a good score in the rankings. This is no longer true and Nike Inc. will be added to the portfolio.
Neil MacNeale, 2 for 1 Stock Split Newsletter, www.2-for-1.com, 888-775-4824, February 2016