Nike stock so far in 2017
Nike (NKE) has had a good run so far in 2017. The sportswear giant has gained 28% as of December 15, 2017. The past month has been particularly impressive with the company rallying more than 15%.
The recent rally has been a result of many factors, including rating and price upgrades, general optimism for Nike after its investor presentation, and growing positive sentiment for retailers after they posted better-than-expected results.
Nike’s stock performance in 2017 looks better than last year’s performance. The sportswear giant was the worst-performing Dow Jones stock in 2016, falling 19% for the year.
Nike has also outperformed the S&P 500 Consumer Staples Index and the S&P 500 Index this year. These two indexes have risen 17% and 19.5%, respectively, YTD (year-to-date).
The Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 3% of its portfolio in Nike, has risen 20% YTD.
Competitors Lululemon Athletica (LULU) and Columbia Sportswear (COLM) have risen 16.7% and 20.3% YTD, respectively. Sketchers (SKX) is among the best-performing sportswear stocks this year. It has risen 55% to date.
Under Armour (UAA), on the other hand, has been among the worst-performing sportswear stocks. The stock has fallen 48% so far this year.
Can we expect a further upside to Nike stock?
Wall Street has set an average target price of $60.86 for Nike, which is 6% below its current price of $64.80. The individual target prices range from $42 (35% downside) to $76 (17% upside) for the next one-year period.
ETF investors seeking to add exposure to NKE can consider the SPDR Dow Jones Industrial Average ETF (DIA), which invests 1.8% of its portfolio in NKE.