Nike Inc (NYSE:NKE) has dropped 12% of its share price in the past month and is trading at just over $52 a share. It could be a great buying opportunity to pick the stock up at a relatively low price. That is not to say the stock hasn’t gotten this low in the past, it has even dropped under $50 back in November. However, since early 2015 the share price has had a lot of support at $50 and by and large has been able to stay above that price point.
At $52, Nike’s stock has a lot more potential to go up in price than down, reaching highs of over $60 just over a month ago. With the stock trading just under 21 times its earning it is a little expensive but given the strong brand of Nike and its strong and consistent growth, it may very well justify the premium price tag.
In the company’s most recent quarter it posted over $8.6 billion in sales, which was a year-over-year improvement of 5%. Nike has also been able to see its profits grow and has been able to achieve profit margins of over 10%, which is a very impressive feat in a competitive industry like footwear and apparel.
Nike is a strong brand and although there might be the possibility the share price drops further, I think based on recent history it doesn’t have much more room to drop but does have a lot more potential to move up. At $52 or lower I think Nike would be an excellent investment.
Related Stories
