In after hours trading today, Nike stock has fallen nearly 5% to the $52 range. It is my opinion that this makes Nike stock one of the ten most attractive investment candidates right now with a constant-currency P/E ratio of only 22 and a reported P/E ratio of 24. Usually, there aren’t many large-cap companies that can be fairly described as cheap when they trade at that kind of price to earnings valuation level, but the strength of Nike’s balance sheet coupled with its very impressive revenue growth continue to make it an exception.
I thought the earnings report was excellent. In a constant currency basis, sales grew by 10% (7% when adjusted for the strength of the U.S. dollar translation.) This is a company that is actually still doing things the old fashioned way to deliver shareholder returns–it is selling more and more of its product each year. It’s … Read the rest of this article!