Nike Stock Might Look Expensive, But Is It?
Nike (NYSE: NKE) shares popped following its strong fiscal first quarter earnings report last week . One of the highlights was a return to growth in footwear sales, after sales declined in the previous quarter. Even with stores reopening, customers continued to shop Nike's e-commerce channel, which lifted sales of classic sneaker styles.
As for the stock, it trades at a forward P/E of 44, which looks expensive. Nonetheless, the valuation might be justified depending on how much extra profit margin management can squeeze out of e-commerce sales going forward.
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Source Fool.com
