Nike’s stock could be trading much higher if investors would stop holding the company’s latest quarterly results against it, “Mad Money” host Jim Cramer said Tuesday.
On March 22, the sporting goods and apparel maker reported earnings that some analysts and investors deemed disappointing. In turn, the stock took a dive the very next day. It has since climbed a bit, but Cramer thinks it deserves to go much higher.
“Nike's last quarter wasn't so much disappointing as it was misunderstood,” Cramer said. “The stock has been penalized enough for its so-called bad quarter, which was in fact quite good, and I think it should be bought here.”
The “Mad Money” host argued that the worst is over for Nike because things were never that bad to begin with. Future orders, a key metric, were very strong. In addition, the company has a lot of positive catalysts going forward. To Cramer, all of this means it’s time to consider buying shares.
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