Nike Inc (NKE)

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Nike: Strong Performance Meets Reasonable Valuation
By: Seeking Alpha | March 24, 2022

Summary

• Nike posted fiscal Q3 results that topped expectations on both revenues and EPS, as the company has done in fifteen of the past twenty quarters.
• Nike's growth was supported by strength in nearly all geographic and product segments, while pricing power contributed with margin expansion.
• Despite a recent rally in NKE stock, I think that the opportunity to buy "the Apple of sportswear" on the dip and ride an eventual recovery is still on the table.

Nike's (NYSE:NKE) stock may have been punished in the first months of 2022 — but its business, not so much. The Oregon-based activewear maker posted fiscal Q3 results on March 21 that topped expectations on both revenues and EPS, as the company has done in fifteen of the past twenty quarters.

Nike reminds me of Apple (AAPL) in a couple of ways: the company owns a well-regarded brand that never fails to create consumer demand, while the management team has proven to be outstanding at executing even during times of distress. For this reason, coupled with valuations that are (finally) no longer stretched thin, I think that Nike is a solid buy following the company's most recent earnings day...

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