January 3, 2011

Nike (NKE)

Taking a look at Nike:
  • Declining growth rate - 15.3% for May 2011 vs 12.6% for May 2012
  • Not expensive at current price of $86.09 - trading at 19.3 times 2011 EPS estimate which is only 1.26 times 2011 growth
  • Nike only needs to trade up to 1.5 times the 2011 growth to give a healthy 18.9% upside from current levels
I'll leave this on the radar for now, but it's not a buy for me yet. I like to see trades that can be profitable while staying away from trading at double the growth rate, and this fits that profile. However, I don't like the declining growth rate.

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