Is it Still Worthy to Acquire Some NIKE (NKE) Shares?

Leaven Partners, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. Fund assets declined by -2.2% in the third quarter and are down -8.5% for the year. The halving of profit growth estimates will typically put downward pressure on stock prices – particularly now when the euphoria dissipates and corporate earnings appear to matter once again. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Leaven Partners mentioned NIKE, Inc. (NYSE:NKE) and explained its insights for the company. Founded in 1964, NIKE, Inc. (NYSE:NKE) is a Beaverton, Oregon-based footwear manufacturing company with a $140.7 billion market capitalization. NIKE, Inc. (NYSE:NKE) delivered a -46.02% return since the beginning of the year, while its 12-month returns are down by -42.99%. The stock closed at $89.97 per share on October 14, 2022.

Here is what Leaven Partners has to say about NIKE, Inc. (NYSE:NKE) in its Q3 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as NIKE (NYSE:NKE), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

360b / Shutterstock.com

Our calculations show that NIKE, Inc. (NYSE:NKE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NIKE, Inc. (NYSE:NKE) was in 72 hedge fund portfolios at the end of the second quarter of 2022, compared to 67 funds in the previous quarter. NIKE, Inc. (NYSE:NKE) delivered a -17.60% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on NIKE, Inc. (NYSE:NKE)  in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

Suggested Articles:

• 12 Best Hotel Stocks To Buy Today
• 10 Best MLP Stocks To Buy Now
• 10 Best Passive Income Stocks To Invest In

Disclosure: None. This article is originally published at Insider Monkey.