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Nike A Top Stock To Buy After Reporting COVID-Related Losses

This article is more than 3 years old.

US markets opened lower amidst the rising number of Coronavirus cases across the country, especially in the highly populated states of Texas, Florida, California, and Arizona this morning. As President Trump tries to alleviate fears of a complete shutdown, markets remain jittery with a negative bias. In addition to the pandemic related news, the results of the annual stress test along with impositions by the Fed on share purchases and dividend payouts are weighing on the markets this morning. While consumer spending recorded growth in May, income levels continued to drop. Pretty negative for a stock market that is within a few percent of all-time highs. If you are looking for fresh ideas to buy, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology has identified the list of Top Buys for today.

FactSet Research Systems Inc (FDS)

First on the list is FactSet Research Systems Inc FDS , a portfolio analytics and financial reporting company aggregating data from 220 suppliers, 115 news sources, and 85 exchanges. The stock is up 27.32% for the year and is expected to maintain the momentum going ahead. Our AI systems have assigned factor scores of D in Technical, C in Growth, A in Momentum Volatility, and A in Quality Value to the company. Digging into the financials, revenue grew by 2.75% in the last fiscal year to $1435.4M, and grew by 20.77% over the last three fiscal years. Three years ago, the revenue was $1221.2M. Operating Income grew by only 3.36% in the last fiscal year to $438M, but it did grow by 27.16% over the last three fiscal years from $356M. EPS was $9.08 in the last fiscal year, growing by 6.94%. EPS registered a high growth rate of 49.16% over the last three fiscal years from $6.51. ROE was significantly better in the last year, showing at 58.9%, when compared to 48% three years ago. Forward 12M revenue is expected to grow by 3.02%, and the stock is trading with a forward 12M P/E of 32.27.

Nike Inc (NKE)

Next, we have Nike Inc on the list. The leading footwear and apparel brand has its presence in every corner of the globe. Footwear accounts for about two-thirds of the revenue that Nike generates. While the stock is down 0.78% on the year, the company has tremendous potential, according to our AI generated factor scores of B in Technical, C in Growth, A in Momentum Volatility, and C in Quality Value.  Revenue in the last fiscal year was $39117M, growing by 8.89% over the last three fiscal years from $34350M. Operating Income was $4772M in the last fiscal year compared to $4749M three years ago. EPS did fall marginally to $2.49 in the last fiscal year from $2.51 three years ago. However, ROE improved significantly to 42.7% in the last year compared to 34.4% three years ago. The stock is trading with a Forward 12M P/E of 42.17.

O'Reilly Automotive Inc (ORLY)

O'Reilly Automotive Inc is a company that deals in aftermarket automotive parts, tools, and accessories with the clients being professionals and do-it-yourself customers. It is one of the largest players in this segment. Given the move to road trips likely this year, the company stands to benefit, and trading at a discount after the stock is down 4.55% for the year. Our deep learning algorithms think that this remains undervalued, with factor scores of rated B in Technical, C in Growth, A in Momentum Volatility, and C in Quality Value. As far as the financials are concerned, revenue grew by 0.65% in the last fiscal year to $10150M, and grew by 13.79% over the last three fiscal years from $8977.7M. Operating Income grew by 10.2% from $1725.4M three years ago to $1922.6M in the last fiscal year. EPS was $17.88 in the last fiscal year, showing an impressive three-year growth rate of 40.65% from $12.67. ROE remains consistently high growing significantly from 99.4% three years ago to 370.4% in the last year. Forward 12M revenue is expected to grow by 1.42% and the stock trades with forward 12M P/E of 23.96.

Sturm Ruger & Co Inc (RGR)

Sturm Ruger & Co Inc RGR is back on our list of Top Buys today. The company is engaged in the designing, manufacturing, and sale of firearms mainly to American customers and operates in two segments, namely firearms and castings. Our AI systems have identified factor scores of B in Technical, C in Growth, B in Momentum Volatility, and A in Quality Value for the stock that has already rallied 48.31% for the year. Revenue grew by 2.34% in the last fiscal year to $410.5M, compared to $522.3M three years ago. Operating income grew by 9.4% to $39.4M in the last fiscal year compared to $75.9M three years ago. EPS registered a sharp fall from $2.91 three years ago to only $1.82 in the last fiscal year, but it did grow by 7.14% over the last fiscal year. ROE also dropped and was 11.7% in the last year compared to 21% three years ago. Forward 12M revenue is expected to grow by 3.07% over the next 12 months, and the stock trades with a forward 12M P/E of 17.89.

TTEC Holdings Inc (TTEC)

Our final Top Buy today is TTEC Holdings Inc TTEC , with factor scores from our AI systems of C in Technical, C in Growth, B in Momentum Volatility, and A in Quality Value. The company provides customer engagement management tools and services through cloud-based platforms or on-premises solutions along with sales and marketing solutions. The stock is up 14.47% for the year and is expected to show a strong performance in the digital space. Revenue grew by 2.31% to $1643.7M, growing by 13.82% in the last three years from $1477.4M. Operating Income grew by 5.68% to $130.2M in the last fiscal year compared to a growth of 14.19% from $120.5 three years ago. EPS was also a strong $1.65 in the last fiscal year, growing exponentially from $0.16 three years ago. ROE also increased to 20.3% in the last year from only 3% three years ago. Forward 12M revenue is expected to grow by 0.51% and the stock currently trades with a forward 12M P/E of 23.46.

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