Nike shares fell more than 5% today despite reporting better than expected earnings and a surge in global sales—mainly due to this summer’s World Cup tournament in Brazil.
So, why the massive sell-off?
(Watch: Cramer: Nike quarter beautiful)
Well, the company did beat the street but, it also said expects currency headwinds to impact future growth.
Could the dip a buying opportunity, or should investors just sell it?
Morningstar’s Paul Swinand thinks expectations for the athletic apparel maker are too high. “You would have been much better off putting money to work when the outlook for Nike was much poorer,” he says. “Now they are firing on all cylinders.”
On the other side, Ryan Detrick of Schaeffer’s Investment Research says the stock continue to look good long-term. “We recently saw a test of the 200-day moving average at $70 and a bounce. That says the bulls are still in charge.”
Whose side are you on? Check out the video and be the judge.
- Consumer Discretionary