Nike is trading at a 23 p/e. Net income according to this 1st quarter report was only up less than 7%. How can Nike hold a valuation valuing it for 23% earnings growth when this company is barely growing by having to sell more to make the same money(margin compression)? Take a look at under armour, growing revenues and profits by 25%+ YOY trading at a p/e of 50 but only 32 foward p/e for tremendous growth.
we called it. Overpriced is overpriced. The numbers say it all. Nike had its day, needs to come down big time to get people to even think about buying in. Under Armour really stepping up its game and gaining on Nike. Under armour was worth 1/12th of Nike, today it is less than 1/10th. With Nike going to continue to tread water or head down and Under Armour continuing to go up, it is going to be 1/7th by the end of this year.