This afternoon we will add Nike (NKE) to our Morning Matter Portfolio. Earnings are due after the close.
Nike is the premier athletic retailer of anything sports related. With the Olympics coming this summer, it should be a banner year for those that "Just Do It".
The stock is trading at $65.10 and our upper target is $104.08 and the price target is $89.51 which is well above the current price. Beta is 0.57 so this is an ideal name to add as markets rebound from the recent lows.
Estimates for the current year (2016) are $2.15 and $2.48 for next year (2017). We think over time 2017 numbers are way too low and will move higher. The numbers for 2016 have come rise a ton in the last year, from $1.85. There is a dividend of $0.64 which sports a yield of 0.99%.
Currently, there are 10 strong buys, 15 buys and 6 holds. So the potential exists for a good number of upgrades to strong buy. It is interesting there have been no ratings changes in 2016.
Technically, $60 seems to be a good level of support. Year to date the stock is higher by 3,55% through March 21st close. We note that the largest holder of shares is Vanguard followed by such notables as State Street, Jennison, Fidelity, T. Rowe Price, Janus and TIAA-CREF.
We recognize this name is a all about growth and can go lower and as such we will establish a put position in front of earnings due after the close today. We will comment on this name on Thursday after the dust settles tomorrow.
Buy at the market before the close. Also, Buy 1 April $65 Put for each 100 shares. The cost of the put is $2.46 or $246. If you buy less than 100 shares, then still buy 1 Put.
The symbol for the put is: