Jim Cramer Discussed These 11 Stocks and Recent Market Rotation

4. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 89

NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer discussed the recent downgrade by a Needham analyst, as he remarked:

“Or take Nike. Oh boy, the stock of Nike. What had it been? [The house of pain]. This thing spiked when they canned the previous CEO and put in an old hand, Elliott Hill. He’s had to work fast with his Win Now initiative that includes returning the company to its roots as a sports-based business. Still, if you take a longer-term view, this stock has been a nightmare, okay? But late last month, three board members, including Hill and Tim Cook, yes, the CEO of Apple, bought a ton of stock, with Cook actually putting almost $3 million to work. Boy, talk about a hand over fistful of confidence.

Today, an analyst from Needham decided to downgrade Nike from Buy to Hold. I’m going to quote because I thought it was kind of outrageous. ‘The turnaround is progressing slower than we expected. We’re concerned about the recent level of sell-in to the North American wholesale channel. China appears highly problematic, and Street numbers for the next 12 to 24 months look too high to us.’ Did the stock get hammered in response to that incredibly negative sentence that I just read? No, it closed up more than 3%. Were Nike’s buyers simply mocking this bearish analyst? Actually, it’s a new year, and there’s a lot of value in Nike. North America has already turned. China is a disaster, but Hill knows it. He has a plan. I want to invest alongside Cook and Hill. I’m not dissuaded by what Needham says, not at all. In fact, I’m cheered. When a stock goes up after such a sharp downgrade, you know, I think it’s been immunized against the negativity. I predict the analysts will come out from their foxholes, from their shelters, and say [buy, buy, buy,] Nike.”

NIKE, Inc. (NYSE:NKE) is an athletic and casual footwear, apparel, equipment, and accessories company that sells its products under brands, including Nike, Jordan, and Converse.