Foot Locker investment seen as a safer Nike bet

• Sterne Agee recommends buying Foot Locker (NYSE:FL) over Nike (NYSE:NKE) to capture the expected growth in the running and basketball shoe categories.
• D.A. Davidson is also cautious on Nike in front of earnings later this week. The firm forecasts future orders of 11% for the Swoosh, but warns on stronger F/X and competitive headwinds in FY16. Shares are rated Neutral with a $101 price target ($110 5-year PT).
• The aggressive push by Under Armour into running and basketball shoes is seen as another reason to buy Foot Locker to capture Nike's growth without some of the risk.
• The other side of the argument is Nike's growing tech presence which a Foot Locker investment fails to capture.
• Previously: Futures growth and F/X impact sized up on Nike ahead of earnings (Mar. 16 2015)

Comments

[jc_lopz]

Thats a funny way of looking at it, but yes, in a way it does represent the sales of all the big sports apparel companies! @Gooniegoogoo

[Gooniegoogoo]

Is it safe to say that FL could be considered an ETF in the footwear and apparel realm? Considering they sale NKE, UA, Reebok, etc. I've been eyeing NKE and waiting for a pullback to $90> but this makes me reconsider, thanks for the info.