Posted 3/10/2024, 1:18:55 PM
NIKE Stock Drops Despite Strong Profits and Growth Potential
- NIKE's stock has declined 16% in recent months despite strong financials like a high 37% return on equity (ROE)
- High ROE indicates NIKE efficiently converts shareholder investments into profits
- NIKE has achieved moderate 11% net income growth over the past 5 years
- NIKE reinvests 65% of profits for growth and pays 35% in dividends, showing a commitment to shareholders
- Analysts forecast NIKE's high ROE will rise to 54% in coming years, indicating potential for further earnings growth