Out Fox The $treet

  Nike has rallied back to $130 without a snapback in earnings being reported. The athletic footwear company has already seen a large boost in sales during covid and a huge risk is the company giving back some of those sales. The stock is priced for near perfection at 27x FY25 EPS targets while the market appears to ignore the worse case scenario where massive EPS growth doesn't occur. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   The market often falls in love with stocks and  Nike  ( NYSE: NKE ) is one of the prime examples in the current market. Despite the weak apparel retail market and the fact the footwear giant was  one of the worst offenders with over ordering, the stock is one of the priciest in the market. My  investment thesis  remains ultra Bearish on the rally back to $130. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please...

  Nike reported strong results for FQ1'22, but the company guided to a dismal holiday season. The athletic apparel company cut the FY22 growth rates in half to only mid-single digits. Factories closed in Vietnam can't reopen in time to manufacture footwear or apparel capable of reaching North American markets prior to the holidays. The stock faces multiple compression along with flat EPS growth to where a 30x multiple (still aggressive) leads to a price target of only $107. Looking for a helping hand in the market? Members of Out Fox The Street get exclusive ideas and guidance to navigate any climate.  Learn More » The market was already over pricing the value of  Nike  ( NKE ) heading into their  FQ1'22 results  despite known supply chain issues with Vietnam factories closed due to COVID-19. Investors probably can't be blamed for looking past these issues after the athletic footwear company had soared past expectations in prior quarters. My  investmen...

The market has fought owning Under Armour (UA, UAA) for years now, but a simple reason exists to own the stock. As long as the company has a relevant brand in turnaround mode, wise investors will utilize the P/S multiple to derive value.

The success of the last decade is leading to increased competition. Increasingly, Adidas and Under Armour are making strides in endorsement deals by ramping up spending. Nike is an expensive stock for one facing a more competitive environment. In the business world, the typical price of success is increased competition. A company that has seen huge stock gains or generates large profits can expect a flood of new competition. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.