Jim Cramer of CNBC on Tuesday said Nike Even after mixed quarters, stocks are more investable than Wall Street believes.
“I’m not saying this was a great quarter … but that’s a big deal, but I don’t think it was as bad as today’s 7% decline. [suggests]””Flirt“The host said,” The long-term story remains, “he continued.
“I think the downside risk is burned into stocks, but there is absolutely no potential upside. That doesn’t necessarily mean Nike is screaming here. If it goes down from here, it’s certainly. I will start the position tomorrow. “
Nike reports earnings and earnings beats That fourth quarter, Based on an analyst survey by Refinitiv. According to the company, first-quarter sales are expected to be flat or slightly up year-on-year, with full-year sales expected to grow in the low double digits.
The company faces many headwinds, including the roar of the supply chain, the blockade of Covid in China, and the swaying consumers in the United States.
Total sales declined 19% year-on-year in Greater China, with total sales declining in North America and a significant decline in Greater China. CEO John Donahoe said in Nike’s earnings announcement that the company “has a medium- to long-term view. Today, we are more confident than ever.”
“At this point, Nike’s biggest problem is China, but China’s commentary … was more bullish than it wasn’t.” Kramer said.
Analysts have lowered Nike’s price target, but he added that the reduced target represents a larger market change than the company.
“last week, I told you Gross earnings estimates were too high and had to go down before the market could find a sustainable bottom. It’s like this. “
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