Will Nike Help You Retire Rich

Now more than ever, a comfortable retirement depends on secure, stable investments. Unfortunately, the right stocks for retirement won't just fall into your lap. In this series, I look at 10 measures to show what makes a great retirement oriented stock. and internationally. Yet with up and coming niche players trying to make their mark o ask n the industry, can Nike sustain its size advantage? Below, we'll revisit how Nike does on our 10 point scale.

The right stocks for retirees With decades to go before you need to tap your investments, you can take greater risks, weighing the chance of big losses against the potential for mind blowing returns. But as retirement approaches, you no longer have the luxury of waiting out a downturn.

Sure, you still want good returns, but you also need to manage your risk and protect yourself against bear markets, which can maul your finances at the worst possible time. The right stocks combine both of these elements in a single investment.

When scrutinizing a stock, retirees should look for:

Size. Most retirees would rather not take a flyer on unproven businesses. Bigger companies may lack their smaller counterparts' growth potential, but they do offer greater security.

Consistency. While many investors look for fast growing companies, conservative investors want to see steady, consistent gains in revenue, free cash flow, and other key metrics. Slow growth won't make headlines, but it will help prevent the kind of ugly surprises that suddenly torpedo a stock's share price.

Stock stability. Conservative retirement investors prefer investments that move less dramatically than typical stocks, and they particularly want to avoid big losses. These investments will give up some gains during bull markets, but they won't fall as far or as fast during bear markets. Beta measures volatility, but we also want a track record of solid performance as well.

Valuation. No one can afford to pay too much for a stock, even if its prospects are good. Using normalized earnings multiples helps smooth out one time effects, giving you a longer term context.

Dividends. Most of all, retirees look for stocks that can provide income through dividends. Retirees want healthy payouts now and consistent dividend growth over time as long as it doesn't jeopardize the company's financial health.

With those factors in mind, let's take a closer look at Nike.

Source: S Capital IQ. Total score = number of passes.

Since we looked at Nike last year, the company has kept its seven point score. The stock hasn't done much better than that flat performance, climbing by roughly 5% over the past year.

One of the biggest successes that Nike has enjoyed is its discovery that in a world where retail stores are undergoing a huge transformation, what's important is having brand awareness that can drive sales wherever your goods happen to be. With a combination of its own stores as well as selling i nike free australia ts shoes and other merchandise through retail partners, Nike provides multiple showrooms for shoppers either to buy products on the spot or feel more comfortable getting them online.

Still, the competition in athletic goods has been fierce. Under Armour has emerged as a credible long term threat, with its huge growth only beginning as it spreads across the globe and tries to capture a bigger part of Nike's shoe market share. Meanwhile, athletic apparel specialist lululemon athletica has tapped into the high end yoga niche with a passion, drawing Gap to imitate the company with its Athleta line and arguably showing Nike that it needs to focus more on female shoppers in its efforts to sustain and grow its own revenue.

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