July 5, 2012
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
Nike had a rare earnings miss last week. The stock is down, but it’s not quite time to buy yet. Nike said the slowdown in Europe is taking its toll. That’s the same message we’ve heard from Deckers Outdoor, too. There’s also some concern over inventory building up that might have to be marked down. There’s plenty of malaise in the sector, as Crocs has seen some weakness, too. Does all the recent negativity warrant buying shares in these companies right now? Not yet, in David's and John's opinion. Negative business momentum has a way of persisting for months as it takes time to make adjustments. Put Nike on your watchlist, along with Deckers Outdoor and lululemon athletica. There will be a time soon when these stocks are really great opportunities.
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