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Nike Inc (NKE) Stock Is a Winner Again With Renewed Brand-Name Strength

NKE stock gave up ground in 2016, but the stock looks ready to bounce back this year

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On the last two earnings calls, NKE management has been very bullish on basketball sales. On the most recent call, Nike Brand President Trevor Edwards actually specifically said that Nike Basketball was taking back the North American market share it lost in 2016.

That is big because basketball is a particularly large market with high-margins. Those sales should be additive to the bottom-line, and Nike stock should be in store for some big earnings beats this year.

Bottom Line On NKE Stock

Nike stock’s trailing price-to-earnings multiple of 23 is near a three-year low, but as mentioned earlier, its brand mind-share is at a three-year high. This disconnect between a valuation low and a popularity high provides investors with a compelling entry opportunity into a top-tier company.

I am a buyer of NKE stock here, and I think strong earnings momentum will send shares markedly higher over the next several months.

As of this writing, Luke Lango was long NKE.

Article printed from InvestorPlace Media,

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