NKE - Embedded Expectations Analysis - 2020 11 17
NIKE, Inc. (NKE:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 36.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their competitive advantage, automation investments, and the You Can't Stop Sports marketing campaignSpecifically, management is confident in their ability to improve their competitive advantage, invest in automation, and sustain growth momentum in Greater China. In addition, they are confident sports leagues will continue playing and that the You Can't Stop Sport campaign is succeeding despite the pandemic. Moreover, management is confident in their future opportunities and in their ability to improve EPS
NIKE is engaged in the design, development and marketing and selling of athletic footwear, apparel, equipment, accessories and services. The company focuses its NIKE Brand product offerings in Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear categories. The company markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, tennis, walking, and other outdoor activities. The company has license agreements that permit unaffiliated parties to manufacture and sell, using the company-owned trademarks, certain apparel, digital devices and applications and other equipment designed for sports activities.
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