Why I'm Changing My Mind on Nike Stock

Although I typically avoid stocks in the highly competitive apparel business, I once had a more favorable view of Nike (NYSE: NKE). It developed a reputation for producing high-quality products. Also, its brands backed by celebrities such as Michael Jordan and Cristiano Ronaldo drove massive sales increases over time.

Unfortunately for Nike, it made one critical misstep that caused its sales to level off -- and that, ultimately, caused its stock price to fall. With one of its main competitive advantages now gone, I have gone negative on the stock. While it is possible it could achieve a turnaround that turns me bullish again, Nike faces an uphill battle that, at the very least, probably makes its stock not worth owning today.

Continue reading

Source Fool.com