A Nike Acquisition Of Lululemon Or Under Armour Is Unlikely
Nike (NYSE:NKE) is one of the world's most recognizable brands, with famous athlete endorsers from practically all sports throughout the globe. The $43 billion company has a presence in nearly 200 countries and sells its product in a variety of brands that appeal to all walks of life. However, after a 14,000% return since 1980, and a continuous trend higher, this mammoth of a company/brand has recently hit a crossroad. The company's stock has traded somewhat flat over the last year with mediocre gains during a year when the market has rallied 23%. Consequently, rumors are beginning to stir and questions are being asked of whether or not Nike is preparing for, and if it needs, a high profile acquisition to create excitement and shareholder value.
As the company prepares for its quarterly earnings, some are concerned that Nike will disappoint and that its growth has hit a wall. When you take a look at the company's fundamentals, this perception doesn't make Nike Air Max 2015 Womens a lot of sense. The company grew revenue by 12% during its most recent quarter, and has a forward P/E ratio of 16.33 compared its current P/E ratio of 20.36, indicating earnings growth. The Cheap Nike Air Max company returns $24 billion per year as an industry leader; however, compared to its leading competitor, Adidas (OTCQX:ADDYY), the stock is priced at a bit of a premium, and the hype surrounding the company has regressed. Cheap Nike Air Max Free Shipping Hence, not only do some expect a high profile acquisition, but some investors demand it.
The two Nike Air Max Outlet most popular potential acquisitions are Lululemon (NASDAQ:LULU) and Under Armour (NYSE:UA). Both are fast growing companies in the athletic apparel industry, with individual focuses. Lululemon concentrates on women's fitness while Under Armour is primarily a men's sporting apparel company. Both would provide excitement for Nike, and would also give Nike a competitor that is gaining ground on two different industries. However, the spark provided from acquiring either company, along with fundamental growth, would come at a hefty price. Take a look at the stock metrics/fundamentals of both Under Armour and Lululemon below.