NIKE, Inc. (NKE), Carter’s, Inc. (CRI), Iconix Brand Group Inc (ICON): Three Shoe Companies for Different Ages

When looking at financial indicators, NIKE, Inc. (NYSE:NKE)’s picture blurs a bit since there have been many internal sales. Also, cash has been on the downside for the last 2 years and cash flow has taken a big dent. Additionally, the firm has been negatively impacted by political, economical, and social events in manufacturing states like China, Vietnam, Indonesia, and Thailand.

Fundamentals are not that great either. NIKE, Inc. (NYSE:NKE) is trading at a small premium to industry averages, yield and dividends are below competitors, and price is taking an interesting dive. So, it is recommended to hold until conditions at manufacturing states stabilize and fundamental indicators recover.

Crawl first, then run

Running has been on the rise considerably, increasing opportunities for companies like NIKE, Inc. (NYSE:NKE). Nevertheless, rising demand also calls for a responsible management. It is my understanding that Nike has never addressed issues at manufacturing countries in a decisive manner. For the same reason, I prefer to buy Carter’s, Inc. (NYSE:CRI) because there is more room to grow and management remains spotless of wrongdoing. Iconix Brand Group Inc (NASDAQ:ICON) is also a great buy, especially when its business model avoids manufacturing risks.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike.

The article 3 Shoe Companies for Different Ages originally appeared on Fool.com.

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