Is Nike's Stock Still A Buy At All-Time Highs? The Street Debates

A Look At International: DeGulis said Nike showed "impressive" growth in the quarter as sales were up 16.6% in EMEA as management's Express Lane strategy allows it to carry lower inventory levels and replenish stock levels quickly. Encouragingly, the wholesale category is showing 6% in the quarter and the digital business was up nearly 100% in the quarter.

Greater China sales growth of 24.4% was driven by more than $500 million sales on Singles Day and the strength of the Nike and Jordan brands.

"Through digital & China growth, speed initiatives, and marketing expense leverage, we think NKE is in the early stages of a multi-year margin expansion cycle," the analyst wrote.

Underestimated Earnings Growth Story: Greenberger said Nike's strong earnings report should serve as confirmation of the company's long-term revenue, margin, and EPS growth profile. Recent momentum makes the case that the research firm's revised EPS estimate of $2.82 (from $2.60) is still conservative.

The company beat revenue estimates by $1.6 billion and $700 million in the fiscal first quarter and second quarter, respectively, for a combined first half of the year beat of $2.3 billion. If the company continues to generate high-single-digit year-over-year growth rates there could be as much as $2 billion in upside potential to the firm's 2025 revenue estimate of $60 billion, or as much as $3 billion upside versus the Street's $59 billion estimates.

NKE Price Action: Shares of Nike were trading higher by 3.8% to $144.62 a publication time. The stock earlier hit a new all-time high of $147.91.

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