The bears are in control of Nike Inc (NYSE: NYSE:NKE) stock after the company reported earnings. One investor was left puzzled after viewing the good news in the report as positive and the bad news in the report as better-than-expected.
What To Know: Hightower Advisors' Stephanie Link bought Nike shares ahead of the company's report, calling it "the definition of quality on sale." She increased her position on Tuesday after the stock fell below where she bought it last week.
"At the time when I bought it, a small position, it was already down 36% (YTD) so I thought a lot of bad news was in the stock," Link said Tuesday on CNBC's "Fast Money Halftime Report."
The bears are latching on to declining numbers in China, but Link pointed out that the company's China results were strong relative to its peers.
"China was down 19%. Well, I was actually thinking that China was going to be down 30% to 35% because Adidas (ETR:ADSGN) fell 35% in China and so did VF Corp (NYSE:VFC) in their last quarters," Link said.
She acknowledged that the stock could trade sideways for a while, but she increased her position because she doesn't see it going much lower.
"The bears are winning out today, which I think is absurd because the stock is already down so much," she said.
Link highlighted the company's strong top- and bottom-line results, its solid guidance and the fresh $18 billion buyback.
Related Link: Nike's Fourth Quarter 'Not As Bad As Feared': Why 3 Analysts Are Lowering Price Targets
"I think they are going to weather the storm quite well, and I think the stock is down, it's down and out, and I kind of like the risk/reward here," Link said.
NKE Price Action: Nike has a 52-week high of $179.10 and a 52-week low of $103.46.
The stock was down 6.32% at $103.51 at press time, according to data from Benzinga Pro.
Photo: grailify from Pixabay.
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