Nike Stumbles After a Good Quarter

Shares of Nike fell a bit today, despite posting a good quarter. Is the monarch of sports apparel a good buy today?

Mar 21, 2014 at 1:05PM

Nike (NYSE:NKE) shares are down today after the company posted earnings after market close yesterday. Despite that, however, Motley Fool analyst Brendan Mathews thinks the quarter for the company was a good one. Revenue increased by 13%, and earnings per share grew by 4%, which slightly beat analysts' estimates.

One potentially concerning metric for the company is that total revenue is growing faster than earnings per share, which can sometimes mean contracting margins. Brendan doesn't see that as the case, though, because Nike is investing so much in its brand and infrastructure at the moment, and that should lead to growth for the company down the road.

So is the stock a buy today? After the stock's amazing run in 2013, performance has been somewhat muted in 2014. Brendan still loves the company and its international growth prospects, and sees the 12% futures orders growth as a great sign of continued growth down the line. But at 25 times earnings, the company may look a little pricey for now and investors may want to wait for a pullback.

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Brendan Mathews owns shares of Nike. Erin Kennedy has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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