The Pullback in Nike Looks Like a Buying Opportunity

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Nike (NYSE: NKE) stock has been under considerable selling pressure lately. Shares of the sports clothing leader are down by more than 20% in the last year, mostly due to concerns about decelerating growth in the company's future orders. However, the market seems to be missing the big picture when it comes to Nike, and there are reasons to believe that the recent pullback in the stock could be creating a buying opportunity for long-term investors.

Investors are focusing on the wrong metric

Performance during the quarter ended in September, which is the first quarter of fiscal 2017 for Nike, was quite solid. Revenue grew 8% year over year, while sales in constant currency terms increased 10%. This is actually an acceleration versus a 6% increase in U.S. dollar revenue and a 9% jump in constant currency sales growth during the quarter ended in March.

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