School's in Session: Nike's (NKE) Going Higher - Cramer
Tweet
Share
E-mail
Get Alerts NKE Hot Sheet
Price: $93.94 --0%
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 17 | New: 4
Rating Summary:
32 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 17 | New: 4
Join SI Premium – FREE
Nike, Inc, (NYSE: NKE) shares are seeing some early weakness Thursday following strong second-quarter results issued late Tuesday. Shares ended Wednesday about 3 percent better and are down about 0.6 percent this morning.
Stock swami Jim Cramer said there's still plenty of room for Nike to run (no pun, I'm sure), but you need to do your homework.
Cramer did his homework, just to show why Nike is still the (high)tops.
First, Cramer looked at demand for Nike. With strong advertisements and athlete endorsements, not to mention awesome commercials like the one below, Nike has plenty of "cool factor" to work with.
Next, future orders, up a comfortable 13 percent through April 2012.
Third, near-term catalysts. Three big events include the 2014 World Cup, 2012 Summer Olympics, and the return of pro basketball.
Fourth, geography. Do you remember where Bhutan is? It doesn't matter... Nike does, and it's one of many emerging markets where it's seeing growth. China alone accounts for about 13 percent of Nike's sales.
Fifth, revenue growth. Nike is seeing accelerating revenue growth, Cramer notes. Though inventories at retail locations were higher in the recent quarter, total units have topped, which is a bullish sign for the company.
Sixth, new technology, which Nike has gobs of, from new cottons to lighter, more breathable shoes.
Finally, pricing. Nike said it has seen no push back from pricing increases, and Cramer sees cotton prices falling.
Admittedly, I (the author) never played organized football growing up, but after watching this commercial -- armed with the knowledge that one hit from a 6'9", 380-lb lineman would surely end up as both a hilarious story and tragic ending -- I feel like giving it a go. That's Nike.
Stock swami Jim Cramer said there's still plenty of room for Nike to run (no pun, I'm sure), but you need to do your homework.
Cramer did his homework, just to show why Nike is still the (high)tops.
First, Cramer looked at demand for Nike. With strong advertisements and athlete endorsements, not to mention awesome commercials like the one below, Nike has plenty of "cool factor" to work with.
Next, future orders, up a comfortable 13 percent through April 2012.
Third, near-term catalysts. Three big events include the 2014 World Cup, 2012 Summer Olympics, and the return of pro basketball.
Fourth, geography. Do you remember where Bhutan is? It doesn't matter... Nike does, and it's one of many emerging markets where it's seeing growth. China alone accounts for about 13 percent of Nike's sales.
Fifth, revenue growth. Nike is seeing accelerating revenue growth, Cramer notes. Though inventories at retail locations were higher in the recent quarter, total units have topped, which is a bullish sign for the company.
Sixth, new technology, which Nike has gobs of, from new cottons to lighter, more breathable shoes.
Finally, pricing. Nike said it has seen no push back from pricing increases, and Cramer sees cotton prices falling.
Admittedly, I (the author) never played organized football growing up, but after watching this commercial -- armed with the knowledge that one hit from a 6'9", 380-lb lineman would surely end up as both a hilarious story and tragic ending -- I feel like giving it a go. That's Nike.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
- JPMorgan Downgrades Boyd Gaming (BYD) to Neutral
- Apollo Global Management (APO) to Buy US Silica (SLCA) for $15.50/sh Cash
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogRelated Entities
Jim Cramer, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
