Better Buy: Nike vs. Restoration Hardware
Would you rather own a business selling everyday items for the global masses, or a business selling select luxury items to just the U.S. affluent demographic? That seems like an easy answer, but deciding between Nike (NYSE: NKE) stock and Restoration Hardware (NYSE: RH) stock is more complex than that.
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Over the last four quarters, Nike has grown revenue by 8% and net income by 3%. Stable, steady growth from this behemoth blue-chip company has endeared it to investors. Consider that in March, at the bottom of the stock market crash, Nike stock still traded around 25 times trailing earnings. That's pricey for a clothing retailer, and it shows investors' comfort level with the company's long-term prospects even in the most uncertain of economic situations.
Source Fool.com
