| Symbol | Action | # Shares Traded | Recent Price | % of Portfolio* | Shares Owned* |
|---|---|---|---|---|---|
BUY | 50 | $133.66 | 3.39% | 900 |
Nike
After you receive this Alert we will be buying 50 shares of Nike (NKE) at roughly $133.66. Following the trade NKE will represent 3.39% of the portfolio.
We will be adding to our position in Nike with the stock trading back at this low $130s level we called out in late January here when the market was selling off at the height of the GameStop (GME) mania. We thought those levels represented an opportunity then, and we believe the same holds true here.
Nike is currently off about 10% from its all-time high, and we view pullbacks of this magnitude on zero company news in a high-quality name like Nike attractive, which is why we are willing to violate our low average cost basis by adding to our position.
Nike is a best-of-breed apparel company pivoting away from wholesale and toward direct-to-consumer (a higher margin opportunity) through its unmatched digital experience. The stock may not be cheap on an earnings basis (~45x fiscal 2021 adjusted earnings per share estimates), but we believe the earnings power over the next few years will be significant through strong consumer spending (from both the U.S. and China) and margin expansion opportunities.
Our writeup of the most recently reported quarter can be found here.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long NKE.