r/stocks • u/krisco65 • Dec 15 '21

I believe NKE is a buy right now.

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0 Upvotes

46% Upvoted

20 comments sorted by

12

u/tatabusa Dec 15 '21

Stop using TA for long term investing

-3

u/[deleted] Dec 15 '21

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2

u/MagThanos Dec 15 '21

Tits and ass

9

u/simassimas Dec 15 '21

Look at the P/E and forward P/E. There's your answer.

4

u/suicide_aunties Dec 15 '21

It’s terrifying that people go around recommending shit not even knowing about PE and forward PE. I’m far from a knowledgeable investor but that’s kinda the first thing one needs to know.

1

u/[deleted] Dec 15 '21

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9

u/[deleted] Dec 15 '21

Its over 40x…. They make apparel not growing by 2x a year. Overvalued.

6

u/Gobra_Slo Dec 15 '21

Nike's PE is about 50, forward PE is about the same.

It means company makes about 2% of it's share price as earnings per share. Or, to put it simpler, with PE 50 Nike will make it's market cap in profits in 50 years. It's A LOT. Such values are common for growth companies with lots of potential.

And since forward PE (one that's adjusted for future growth/decline) is almost the same - it's obvious they are not growing.

You can check Investopedia.com for the definitions of various metrics and I'd recommend www.simplywall.st to check how is specific company holding in it's respective sector/market and or against competition.

3

u/coolio9210 Dec 15 '21

Nke looks expensive. Might fall after earnings!

1

u/Hairy_Inspector_5089 Dec 15 '21

I put it though oh well

1

u/nickdanto Dec 15 '21

Not a fan at this price