Nike Inc. (NYSE: NKE) is scheduled to report its fiscal second-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters call for the leader of the Dow to have $0.86 in earnings per share (EPS) on $7.81 billion in revenue. In the same period of the previous year, Nike posted EPS of $0.74 and revenue of $7.38 billion.

This stock has had an outstanding year so far, still up a sizzling 36%. Nike is a worldwide athletic giant and a top consumer discretionary name. It also has outstanding potential upside from a turnaround in its China business, improvements in gross margins and continued innovation-driven market share gains in both basketball and running footwear. With one of the most recognizable brands in the world, long-term investors may do very well adding shares here despite the big move up in the stock this year.

Nike is benefiting from consumer preferences for “athleisure.” With the company’s extensive product line and recognizable worldwide branding, the stock continues to roll year after year. Nike recently provided an overview of its plans to drive growth in its Nike Brand Direct to Consumer (DTC) operations. Driven by its digital business as well as inline and factory stores, Nike now anticipates achieving $16 billion in revenue by the end of fiscal year 2020. Over the next five years, incremental growth in DTC revenues is expected to be driven by e-commerce sales, which are projected to grow to $7 billion. Nike also expects to drive wholesale growth in the mid-to-high single-digit range over the next five years.

Ahead of the earnings report, a few analysts weighed in on Nike:

• Canaccord Genuity reiterated a Neutral rating and raised its price target to $132 from $123.
• Deutsche Bank reiterated a Buy rating.
• Piper Jaffray reiterated a Buy rating with a $140 price target.

As 2015 is coming to a close, Nike was the best performing Dow stock, with the stock up over 36% year to date.

Shares of Nike were trading at $130.16 on Tuesday, with a consensus analyst price target of $143.18 and a 52-week trading range of $90.69 to $135.30.

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