22 Jun

Nike Is among the Dow’s Top Stocks This Year

WRITTEN BY Sonya Bells FEATURED IN Price Movement Observations

Stock performance 

After enjoying a strong 2017, Nike (NKE) stock has delivered solid returns year-to-date. The stock has risen ~18% this year, substantially outpacing the S&P 500, which has risen 2.8%. In fact, the sportswear giant was among the top Dow stocks this year as of June 21, marginally trailing Microsoft, which has risen 18.2%.

Sportswear stocks are having a great run this year. Lululemon Athletica (LULU) and Under Armour (UAA) have gained ~60% so far, with UAA placing among the S&P 500’s top ten stocks. Lululemon Athletica hasn’t missed Wall Street’s top- or bottom-line expectations for five quarters. Its stock surged ~16% on June 1 after its earnings release. Consistent financial results and returning confidence in the athleisure sector have been behind the stocks’ strong performance. 

Nike Is among the Dow’s Top Stocks This Year

Could Nike stock rise?

Nike is currently trading at $73.90, 2.7% below its 52-week high. Wall Street doesn’t see much upside to Nike or any of its close competitors. Analysts’ average price target of $74.36 for Nike implies a ~1% rise over the next 12 months. They expect Under Armour, Lululemon, and Columbia Sportswear (COLM) to fall 28%, 9%, and 4%.

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