Nike Inc (NKE)

Is -30% on the past year. Remember, they have changed management, so don't sell it. See what the new CEO does.

Bought in the last 6 months. Turnaround story of 2-3 years, but fixable. Phenomenal brand. Reporting tomorrow. For new $$, he tends to wait for earnings. See what comes tomorrow. Valuation of 28x looks rich, but it's because earnings have been hit so hard.

It reports Thursday. The CEO will need to explain how the company will reignite the brand globally and show innovation. It's amazing how much damage the last CEO did, something that won't be easy to fix.

Have a new CEO, so give him time. Shares could be down one more leg--then buy--before it moves up.

Went from growth to value very quickly. Tremendously powerful brand and business economics. Phenomenal balance sheet. Hit really hard. Discretionary item. Softness in consumer and in China. Lack of product innovation. 

In the end, brand remains intact. Trades around 20x earnings. Earnings will get hit hard this year, and so the multiple looks high. Attractive turnaround. Likes the new CEO. Can regain its crown. Yield is 1.7%.

The consumer is biting back after all these rising prices. Nike is one company this because they raised sneaker prices too far, so sales have fallen by almost 24% this year.

The multiple is still elevated. They face more competition, especially overseas. And consumers are spending less.

She sold it last spring. It's good that they changed the CEO. Wait and see. They have lost so much market share. They need new product.

They just change the CEO. Shares are down 20% this year. He'd like to enter this, but it's the first time her can recall when it's facing sustainable competition and opens up the door to more. Their brand need to refresh. The cost of attaching star athletes has gotten very expensive. The company needs to innovate.

They face more competition, slower sales in leisurewear, a weaker Chinese consumer and shares trading at 25x PE with no growth in the next 4 years.

They need to innovate. Lines such as the Jordans aren't selling like they used to. They're not innovating. Their biggest celebrity athletes are aging, like LeBron and Kevin Durant--do kids want their shoes. They trade at a high 25x PE for no growth.

Outlook continues to be negative, underwhelming. On the technicals, stock price is well below the 200-day MA. And 200-day MA is trending lower. He wouldn't buy a name below the 200-day by that margin. Give it some time, look for basing.

Near-term outlook for earnings growth is quite weak, below 5%. Not great for a stock trading at 25-26x earnings.

Sold it 18 months ago. Didn't like inventory levels and weak sales growth. They changed the CEO in 2021 and nothing's gone right. Wasn't pleased when they sold directly to consumer and moving away from wholesale--this allowed competitors to take shelf space. The PE is now a reasonable 20x though and it can grow globally. He expects a new CEO which may inspire investors.

Sold on concerns about recession and slower consumer spending. When people tighten their belts, #1 thing to go is clothing and shopping. Little pop recently. Great brand, but struggling. 19x future earnings, cheapest in a decade, but wait for conviction on a turnaround recession-wise. Be cautious. If you own it, hold.

Biggest issues are sluggish sales in China, plus retail strategy to sell through website and branded stores rather than third-party outlets.

He sold some time ago. He struggled with its ability to connect with the younger generation. World leader in so much stuff. Probably a value play, he wouldn't say not to buy. 

But he'd prefer to pay more, knowing it has more momentum behind it. He'd wait until metrics start to improve, showing that its lustre had come back.