Nike: China's Voracious Appetite May Solve The $9.66B Problem

Dec. 17, 2022 11:00 AM ETNIKE, Inc. (NKE)4 Comments
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  • Nike stock is no longer attractive at current levels, due to the recent tsunami of optimism from the Fed's pivot, upbeat November CPI, and China's reopening cadence.
  • With a minimal margin of safety, investors who choose to add at current levels may face more volatility in the intermediate term, due to the raised terminal rates through 2023.
  • While China's flurry of revenge spending may solve NKE's elevated inventory levels over the next few quarters, we reckon the risk-reward ratio is not appealing enough for long-term investing.
  • The patient will be rewarded at a below $100s entry point. Do not chase this rally.

Time to Binge Clock Eat Food Meal 3d Illustration

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Investment Thesis

NKE YTD Stock Price

NKE YTD Stock Price

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Despite the tragic -32.32% correction YTD, the NIKE, Inc. (NYSE:NYSE:NKE) stock continued to offer excellent 5Y total price returns of 80.7% and 10Y returns of 414%. However, seeing that

NKE Revenue, Net Income ( in billion $ ) %, EBIT %, and EPS

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NKE Balance Sheet ( in billion $ ) %

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NKE FCF ( in billion $ ) % and Dividends

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NKE Projected Revenue, Net Income ( in billion $ ) %, EBIT %, EPS, FCF %, Dividends, and Debt

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NKE 5Y EV/Revenue and P/E Valuations

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This article was written by

Juxtaposed Ideas profile picture
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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