NIKE (NKE STOCK): DEEP VALUE? TIME TO BUY?
Вставка
- Опубліковано 5 жов 2024
- Nike or NKE stock dropped nearly 20% following their recent earnings results and weak growth outlook for FY 2025. Is Nike stock finally deep value? My thoughts on their recent results and current valuation.
TAKE CHARGE OF YOUR FINANCIAL JOURNEY:
✅ : www.unrivaledi...
💡UNRIVALED INVESTING MEMBERSHIP: Includes weekly letters with new stock ideas, stock market commentary, real-money portfolio updates, and a community of like-minded investors at Discord (for Premium subscribers).
📈: WHICH BROKERAGE DO I USE?
► Interactive Brokers Link: www.interactiv...
🤖 LEVERAGE AI FOR YOUR STOCK RESEARCH:
chat.aitickerc...
FREE first month CODE: Free1MonthTrial
UPDATE: Now includes nearly all U.S. stocks above a $300 million market capitalization!
🎁FREE Stock Analysis Tools: • A GIFT for you! New Fr...
🎓AFFORDABLE EDUCATIONAL COURSES!
► Learn how to RESEARCH financial statements: www.unrivaledi...
► Learn how to VALUE stocks: www.unrivaledi...
🐦 Twitter: @UnrivaledInvest
DISCLAIMER:
This video is purely for informational and educational purposes. This is NOT investment advice. You should not treat any opinion expressed by Daniel or Unrivaled Investing as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of opinion. Daniel and Unrivaled Investing are not under any obligation to update or correct any information provided on this website or in these videos. Daniel and Unrivaled Investing’s statements and opinions are subject to change without notice.
You should be aware of the real risk of loss in following any strategy or investment discussed in this video or on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned by Daniel or Unrivaled Investing may not be suitable for you. Past performance is not indicative of future results.
In full disclosure, at the time of this video publication, Daniel and accounts he managed owned shares of Fairfax Financial (FRFHF).
INTERACTIVE BROKERS DISCLAIMER:
Interactive Brokers provides execution and clearing services to its customers. UNRIVALED INVESTING is not affiliated with, recommended by or an agent of Interactive Brokers. Interactive Brokers makes no representation and assumes no liability to the accuracy or completeness of the information provided in this video. For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.
None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain
their own independent financial advice and understand the risks associated with investment products/ services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
UNRIVALED INVESTING is a customer of Interactive Brokers. Interactive Brokers and UNRIVALED INVESTING have entered into a cost-per-click agreement under which Interactive pays Unrivaled Investing a fee for each click-through of the Interactive Brokers URL posted herein.
$67 (in case of super crazy sellers) is more like consensus after all analytic works. Yes they will recover like MCD did with mad cow disease incident. It is one of icon brands of USA. They will figure out the best way to compete.
Dark pools will eat you alive
They need need to come out with wider sizes. I am lean, but I am muscular and I haven’t been able to wear Nikes since I was a teenager and I know so many people that can’t wear them because skinny fitting shoes and people aren’t skinny nowadays
Nike is currently a great buy I’ll for 3-10 years
"Terrible results" Revenue was down just 2% and bottom line was up. Was far from terrible. Big overreaction, massive moat, leader in it's field, competition are miles off anywhere near Nike, similar to Tesla of EV's. Easy buy and hold under $80 imo.
Another comment on here is saying they are losing market share.
@@Divide_et_lmperaand do you know how many companies have taken market share in the past and then gone bankrupt? Just like the EV space. Also Nike is literally 50% plus ahead in sales from their closest competitor adidas. They’re miles away from all ‘competition’. People also seem to forget everyone is doing bad at the moment, Starbucks, apple, Tesla people are not spending as much because of inflation. Nike has barley been knocked compared to everyone else. Just like every single recession they’ve survived in. Nike will bounce back, i’m confident in that. And it’s a nice dividend payer too. If Nike dips more, great, I’ll DCA down. And hold for 2-3 years. Easy double from here.
What’s their Moat, exactly?
☑️✅✔️@@Dr.Dumpnpump
It's assigned a wide economic moat by Morningstar based on intangible asset and pricing power and its return on invested capita of 26% over a 5 year average. Warren Buffett claims that the stock price in the long run will mirror than return on capital.@@Dr.Dumpnpump
I resisted the urge to buy at higher levels, but I bought Friday. My strategy is to buy quailty when quality is cheap and diversify. Not sure Nike is quantifiably cheap, but stock is down 55.7% from all-time high, and that's good enough for me.
Your strategy is basically everyone’s strategy lol
@@hugomeza2910 I have in the past overlooked the quality part and paid the price.
Of course I bought the dip…it’s Nike 💨🚀
I think $74.75 that was the bottom. Nike will hit $80 next week
🤣
well im just updating to let you know you're wrong
Still going down this week. You are so wrong
Buy it as a swing trade and sell into earnings next quarter…..
Nike (NKE) presents a compelling investment opportunity. Consider purchasing shares, maintaining your position through market fluctuations, and selling for a potential profit. This is not financial advice.
I bought a lot of calls on Friday…. We already up $2 after market :)
Daniel is there a way to ask you questions about your premium membership ? Such as which stocks did you historically cover
How about DJT can go up 35$ please let me know thanks
I'm for the long run so yah, in 7 yrs. if Nike won't move above $110 then time to give up.
in 7 yrs, Nike will be far above 150 for sure. Just put money on Nike wait for 1-2 years. Free money is right ahead.
I'm still new to this so forgive the basic question but in the bear case how does annualized returns of -0.91% returns equate to -23.7% after 5 years?
The -24% return is offset by the potential annual free cash flow
I believe what you are missing is the "assumed multiple." Look at the differences there.
Nike is assigned a wide economic moat. The vast majority of customers arent partisan enough to care about politics when shopping for shoes. Nike has a return on invested capital of 26% average over the last 5 years. They generate a mountain of free cash flow, gross margins improved, they beat on earnings, and they have a 35% share in footwear, its down 0.37%.
Don’t know anybody over 40 that would even consider Nike shoes at this point
@@AbadaWeeeeeeeeYou'd be wrong in the case of pretty much every developed country outside of the us. I'm not going to wear mocassins to go running outside lmao. Everything else is crap in EU (On shoes, adidas, etc, all pretty meh in my opinion)
@@AbadaWeeeeeeee to each his own. I don't include any political ideology in my investing strategy. I'll invest in "woke" businesses, gun manufacturers and both clean and dirty energy if the thesis makes sense. However, people can invest based on their political beliefs like ESG or woke broke stuff.The free market is great anyone can invest however they like.
Could you do one on Redfin/Zillow with rumors of interest rates coming down this year?
Good question! Just wrote about Zillow last week in my letter for subscribers at www.unrivaledinvesting.com
Can you evaluate ticker "AI"
Hey, do you need any help in your video editing or thumbnails, if so we are happy to help
you still wear shirts while you’re traveling!
They are losing market share. Simple as that. Never been more competition for Nike
It won't last
@@AM-lz2jr Nike won't last, or the competition taking market share won't last?
Where is the basis for that claim? All apparel busineses are doing pretty bad right now.
Why did cvs health dropp again? Something going on in the us?
I wrote about CVS a few months ago and my main conclusion still holds. Subscribers can read it at www.unrivaledinvesting.com
Went woke paying the price like Tgt, Dis , Bud , and Sbux
Without a doubt, they disrespected the flag. I never bought another Nike product.....
Most people aren't that political, and those fads last a short amount of time. Target net income rose over 40% from 23 to 24, Starbucks over the last 3 years has seen their revenue grow by 25% (the latest controversy was a pro Palestinian boycott and loss of sales in the Middle East). I think most people especially globally just don't care about politics. Maybe a tiny minority, but most just want sneakers a coffee or a beer.
@@Ghjgdsfh764 not the people I know ! Many people are done with activist companies . We are a no Nike house . And my kids play 5 sports. They will recover but damage has been done . Marvel Disney will print money w non woke Deadpool! But they hurt there brand big time .
@askaneconomist8265 Yes. It's very difficult to judge how much impact these political issues have. "Go woke go broke" makes a nice story, but it's hard to judge the actual impact. Too many variables. Outside of social media nobody gives an F about this stuff.
Most people outside the US don't care about target, disney, or badweiser especially where I'm from (EU). Starbucks maybe college people but depends on the specific place (not the most popular tbh). Nike on the other hand is used by anyone who has two feet, especially dudes. Nobody gives a crap about US political stuff.
I stopped buying nike products when I noticed my nike shoes would fall apart faster than My "generic" shoes....why would I pay more just for a swoosh symbol.
Clothes has gotten so thin with cheap polyester and easy to rip! Ridiculously cheap quality including tech fleece.
Or SOUN or LAZR
In a nutshell:
1. Not catering to their customers. They make shoes to suit their athletes, not the consumers.
2. Not retroing fan favorites. And if they do, it's not like the original.
3. Not capitalizing on nostalgia. The people between the ages of 41 and 55 were youngsters in nikes golden age of design and innovation. Many of these people love several nike shoes that they didn't get when they were young. Also, many of these people are now parents themselves, which will pass on that love to their kids.
4. Waaaay tooooo expansive.
5. Poor quality and fit.
6. Increased competition. It's not reebok they have to worry about.
7. Too much retros of dunks, Air Force 1s, jordan 1s, etc.
8. Jordan brand sucks. No innovation, no forward thinking designs, and technology.
9. Limited quantities of in demand products.
Just do it
Problem with nike. They signed Caitlin Clarke for cheap with millions of fans worldwide then will take a loss by signing Ana wilson. Lol
Who is the wokiest: Disney or Nike?
I think Disney, no doubt.
Brands like HOKA won’t be popular for long.
Dropped to 69,50€ today😢
Average down and buy evenmore
Temu shoes are cheaper. Fast fashion is a threat to Nike
You'll never get into "deep value" territory with companies like Nike and Starbucks unless we have a complete economic melt down. These companies will always trade at a premium. But to speculate and wait for that time is simply not "smart investing." It's a phenomenal company and an industry leader. Sure it's got competition but it's always a wakeup call for management to step it up.
I think you pay attention to what people are wearing today, out of 10 people, only 2 or 3 are really wearing nikes. It's no longer the cool brand. They were way too focused on collectibles and lost sight of their core customers who were their active runners.
Personally I wouldn't worry too much and for me, I bought some on Friday. I'm not looking for a quick turnaround but rather my horizon is 3-5 years. Like all apparel/shoe businesses, they have cycles. They ran out of fumes and now deckers and sketchers are the "hip" brands but they'll recover and become "hip" soon too. Just give it some time.
Dark pools
Friends hve stopped buying Nike for lots of reasons but Kapernick is the main reason they stopped.
Nobody cares about that. That's just Internet soldiers
@@AM-lz2jr that an be true but also false lol . I see them wear New Balance and Sketchers
Don't do it
Why not?
Eh.
Hello, I really like the content you shared. It is very helpful to traders. May I ask how I can contact you if I want to do business cooperation with you?
It’s cheap
Respect the dedication. Making content while travelling 🫡
You made some interesting points Daniel. I still think Nike is cheap from a valuation perspective compared to it's own history. Not to mention they have almost no debt in this high interest rate environment.
revisit zooninfo!!!! you liked it at 45 its now 12
I thought Zoominfo was unrivaled, but never cared for the valuation!
@@unrivaled now it is 1/4 of the price, do you still think it is expensive?
Buy only Nike 🫶🏼👊🏻👊🏻🙌🏽 great company