Name of opportunity: 👀
Nike, Inc
Investors are not happy: 👎
For investors, the worst part of Nike’s news might be the prediction that sales will drop by 10% in the next quarter. The company attributes this to low sales in China and also predicts a continuing trend for lower direct-to-consumer sales, because of changing consumer trends. Nike faces a challenge from upstart brands who are attracting many of the company’s customers.
Wall Street had estimated that Nike’s Q4 quarterly revenue would be $12.86 billion, but the actual figure was $12.61 billion, 2% less than the year prior. The result of all this has been that Nike's stock has dropped in value by 19.3% since yesterday's report dropped.
How hot is this investment opportunity? 🔥🔥
Nike has announced plans to recover - some of which the company already declared previously. In May, it announced that it would be cutting jobs at Converse, one of its lowest performing brands, which has recently experienced an 18% drop in sales. In April, the company shared that it would be outfitting several teams competing at the Olympics, which could be a powerful opportunity to boost the brand.
The company is still listed as a ‘Buy’ overall. Analysts predict the price of Nike, Inc. will increase from $78.49 to $106.56 in the next 12 months. If you invested $1000, you might profit $131.28. Could the current low value of the stock provide an opportunity for profit? Nike has shared that while the predictions for Q1 are not what had been expected, it predicts that sales will pick up in the second half of the financial year, with the launch of new products.
Sneakerheads: 👟
We previously profiled Nike on Hot Stocks, sharing analysts’ opinions on its status as a blue chip stock, a major company that could bring investors steady earnings. While the company makes sports equipment and sports clothing, it is most known for its sneakers, with some of the most popular products being sneakers like the Nike Air Max and Nike Air Force 1. This American company was founded in 1964 and is named after the ancient Greek goddess of victory.
Which neme?: 🔍
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