JUST DO IT: Investing in NKE for the long haul

Nike has been the darling of both the retail and institutional crowd for some time now but with Wednesday’s sell off, we expect this stock to be bearish over the next two months or so. Too much volatility and the sell off hasn’t completed in full just yet.


JUST DO IT: Investing in NKE for the long haul - 2NKE EPS chart


But over the long term, specifically our three-year TAIL duration, there is much to get excited about. Hedgeye Retail Sector Head Brian McGogh thinks there’s a mismatch as to why the consensus owns Nike, versus why it should own Nike. Here are three important catalysts to keep in mind that will affect earnings to the upside:


  • European Football: While America isn’t too keen on “soccer,” Europe and the rest of the world go nuts over Euro 2012. It’s seriously the biggest sporting event in the world going on this year, save for the Olympics which are an unjustifiable catalyst.
  • FlyKnit Technology: People get excited over new technologies in apparel. This is an excellent new product and platform for Nike and they’ve got the manufacturing process down solid. It hits stores next month and people are ready to buy. But the hype shouldn’t be factored into a near-term position. This is an investment that will matter over the next two to three years. 
  • The NFL Deal: Though the news is a bit old by now, it’s still a very important win for Nike. They reap the benefits at an accelerating rate and come football season, you’ll be seeing a lot more swoosh.

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more