Nike: Shares Reach A Compelling Valuation Ahead Of Earnings, Just Do It


  • Lower-income households are feeling pressure while the high-end market appears to be doing well, evidenced by reports from Ross Stores and Foot Locker.
  • Nike’s Q3 results last March showed a mixed performance, with a beat in earnings but a decline in digital sales. China remains a challenge for the company.
  • I am upgrading Nike from a hold to a buy valuation given its attractive valuation and solid free cash flow yield.
  • Technical risks are still very apparent, though, and I highlight key price levels to monitor.
Nike flagship store at Bangkok , Thailand.

Thank you for your assistant

It’s hard to paint the American consumer with a broad brush. There’s growing evidence that lower-income households are increasingly pressured while the high-end is fairing OK. A trade-down effect appears in full swing, at least that’s a reasonable conjecture following a strong report

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