CNBC’s Jim Cramer on Thursday gave investors his stamp of approval to buy some shares of Nike, but he warned that such an investment is tricky.
“You’ve got my blessing to put on a small position — only small — because if Nike really can turn itself around, the stock will take off long before the financials do,” he said. “You need to get ahead of that, but it’s a risky call, so I suggest building your position gradually over time.”
Nike reported an earnings beat in its most recent quarter. However, it failed to meet revenue estimates and withdrew its full-year guidance. The sneaker retailer just hired a new CEO — company veteran Elliott Hill came out of retirement to replace John Donahoe as CEO this week. The company’s stock was hit in response to the quarter, and shares are currently down 22.81% year-to-date.
Cramer said Nike’s management change could improve business, …