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Nike Looks Good & An Opportunity in T-Mobile

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Nike: Buy This Sporting Powerhouse Now

Summary

  • Nike posted excellent 3rd quarter FY2016 results for period ended 29 February 2016, and even better results are expected in the following quarters.
  • The company’s business fundamentals are going strong, with soaring sales in North America and Greater China region powering up its growth trajectory.
  • Buying this stock is the right strategy, as the company has just begun implementing its 2nd round of a new four-year $12 billion share repurchase program approved in November.
  • Upcoming Brazil Olympics will be a major catalyst for sales growth.

The Olympics in Brazil could be a boon to Nike's earnings.

Nike (NYSE:NKE) is continuing its upward sales momentum since the Global Financial Crisis struck in 2008. The share price has been trending upwards since hitting a low of $10.38 at the end of February 2009 to an all-time high of $67.16 at the end of November 2015. The share price has suffered a minor pullback somewhat since end-November 2015 due to the worldwide stock market correction. Currently, it is trading around $59 per share, which is a great entry price given its soaring business fundamentals... READ MORE



T-Mobile: Correction Provides Entry Opportunity

Summary

  • The pullback in T-Mobile shares following 1Q16 results on April 26 (-4.5% vs. +0.2% S&P 500) creates an attractive opportunity to buy the stock.
  • Following a +6.3% run-up in share prices in the last month, a correction was expected. But with the solid results T-Mobile reported, it only makes sense to go long.
  • The company upgraded its guidance for 2016, which re-enforces T-Mobile’s operational and earnings momentum over its telecom competitors.

It really doesn't get better than this. T-Mobile (NASDAQ:TMUS) 1Q16 results were good…again. For an industry that is competitive and mature, the company has done an incredible job of continuously adding subscribers and taking market share from industry leaders AT&T (NYSE:T) and Verizon (NYSE:VZ), and overtook its nearest competitor Sprint (NYE:SS) last year.

1Q16 results saw the company add its 12th straight quarter of subscriber additions of over 1 million. Revenue rose 11% to $8.6 billion, driven by a 13% increase in service revenue to $6.6 billion. PAT came in at $479 million (EPS $0.56), compared with a loss of $63 million in 1Q15 (EPS: -$0.09). While results were clearly better than consensus estimates, the increase in guidance is what increases the confidence to buy the company's stock. T-Mobile increased its postpaid net-add FY16 guidance range to 3.2-3.6 million (from 2.4-3.4 million) and EBITDA target to $9.7-10.2 billion from $9.1-9.7 billion... READ MORE

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