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.
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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