In the past seven days, Nike stock has declined by 7.53%. In comparison to the S&P 500 Index, the stock has underperformed by 4.05% and has continued to underperform the index in a time span of four weeks as well, which declined as much as 6.13% while dropping by 6.6% in a month’s time. On Friday, the sportswear company traded at $121.86 identifying a decline of 3.27%.
The trading session on Friday commenced with a share price of $125.08; the stock was seen hitting a high level of $125.22 and a low end of $121.1542. The shares were seen fluctuate between these two points throughout the intraday trading. The amount of shares that were being traded during the session was 8,185,488 shares. The number of outstanding shares of Nike is 852,193,760 shares with a market capital of 105.06 billion. The multinational corporation reported earnings per share of 3.96 and price to earnings ratio of 30.95.
On a separate note, Fortune magazine was looking for someone who would fit the description of a specific company that is “firing on all cylinders” having a leader who was “unique” and one such chief executive officer fit the shoes, that being Mark Parker with the company being Nike, Inc.
The remarkable chief executive officer joined the company in 2006 and since then, the revenue of the multinational company has doubled to a solid $31 billion from $15 billion. Nike’s revenue is not the only number that grew since then; the earnings per share have grown to $3.96 from $1.32 in 2006. Finally, its stock has gone up from $20 to $125 per share.
The CEO’s plans for the future are rather promising. He plans to increase the sales of the company 10% on an annual basis from 2015 to 2020, while having a current growth rate of 8.5%. Since it has been performing exceptionally well in all aspects, including brand, pricing, and consistency, the investors are convinced with his plans.
The only challenge the company is expected to face is from its competitors, particularly Under Armour and Lululemon Athletica. Currently, these are small rivals, with sales of $3.7 billion and $1.9 billion from $1.1 billion and 450 million respectively. These are going towards fast growth and continue to maintain their profitability, not to mention the fact that they are presently generating more profits.
Nike will continue to follow its plan to keep up with its revenue generation, and will continue to outperform any other rival that enters the market. The company will effortlessly continue to outspend in comparison to the two new competitors.