NikeLong
NKE Share Buy Point
If you're interested in accumulating longterm shares in a company that you support consistently, place Nike on your watch. Even if its just for LEAPS.
Technicals:
It has retraced over 50% of its overall price, returning back to 2020 lows. It is currently displaying a buy combo on the monthly, 3 month, and 6 month charts, in confluence with a very strong demand area, longterm trendline, and 200ma. Note that Price has previously bounced a total of 3 times at this area, this is the 4th touch. RSI and STOCH are both oversold and there are also signs of divergence.
Fundamentals:
Price to Earnings and Price to earnings ratios have been falling consistently since 2020. Over the past year, their net margins have increased. Revenue and Earnings are expected to fall over the next year to quarter. Since 2019, Nike has steadily increased its free cash flow while steadily decreasing its total debt. Also note that Nike Dividend yield has increase YoY since 2020 indicating healthy growth if they're willing to pay more in Dividends (which is another incentive to invest for the longterm.
Lastly, Using the capital asset pricing model to calculate a fair value of the company, Nike's fair values are as follows (hinting at undervalued)
1yr projection = $208.73 with 61.3% margin of safety
3yr projection = $183.48 with 55.9% margin of safety
5yr projection = $161.29 with 49.9% margin of safety
Technicals:
It has retraced over 50% of its overall price, returning back to 2020 lows. It is currently displaying a buy combo on the monthly, 3 month, and 6 month charts, in confluence with a very strong demand area, longterm trendline, and 200ma. Note that Price has previously bounced a total of 3 times at this area, this is the 4th touch. RSI and STOCH are both oversold and there are also signs of divergence.
Fundamentals:
Price to Earnings and Price to earnings ratios have been falling consistently since 2020. Over the past year, their net margins have increased. Revenue and Earnings are expected to fall over the next year to quarter. Since 2019, Nike has steadily increased its free cash flow while steadily decreasing its total debt. Also note that Nike Dividend yield has increase YoY since 2020 indicating healthy growth if they're willing to pay more in Dividends (which is another incentive to invest for the longterm.
Lastly, Using the capital asset pricing model to calculate a fair value of the company, Nike's fair values are as follows (hinting at undervalued)
1yr projection = $208.73 with 61.3% margin of safety
3yr projection = $183.48 with 55.9% margin of safety
5yr projection = $161.29 with 49.9% margin of safety
Dennis Butler Jr.
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