In this article, we discuss the 4 China rebound stocks to buy according to Jim Cramer. If you want to read about some more stocks that Jim Cramer recommends, go directly to 9 China Rebound Stocks to Buy According to Jim Cramer.
4. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 67
NIKE, Inc. (NYSE:NKE) makes and sells athletic products. Jim Cramer has backed the company to smash market estimates on earnings in the coming months, predicting that the earnings call of the firm in the next quarter will be “very different” from the recent one in which the guidance disappointed analysts. Cramer has said that those who had sold NIKE, Inc. (NYSE:NKE) would “regret it” and identified the FIFA World Cup and China reopening as some of the growth catalysts for the stock in the summer.
On June 29, Barclays analyst Adrienne Yih maintained an Overweight rating on NIKE, Inc. (NYSE:NKE) stock and lowered the price target to $125 from $140, noting the firm was battling overall consumer slowdown and persisting macro pressures.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in NIKE, Inc. (NYSE:NKE), with 6.7 million shares worth more than $905 million.
“NIKE, Inc. (NYSE:NKE) is another play on e-commerce as well as the anticipated growth in consumer spending as we learn to live with COVID-19. After selling out of the stock in 2016 due to competitive concerns, we were motivated to repurchase shares because of optimism around a new management team’s focus on accelerating Nike’s shift toward e-commerce and direct-to-consumer (DTC) distribution. Near-term supply chain issues in Vietnam and retail weakness in China that we see as ephemeral provided a good buying opportunity. We do not believe the market is giving proper credit to Nike’s potential to deliver attractive, high-single-digit revenue growth while delivering operating margin expansion as more merchandise is sold direct. NIKE, Inc. (NYSE:NKE) is also still under indexed to the women’s category, which we see as a significant ongoing catalyst.”