This one thing about Nike makes me nervous: Analyst

Nike has had a great run over the past month, with shares rising 15 percent on the back of a great earnings report.

And according to one analyst, the winning streak could continue at least in the short term, thanks to strong growth in China and Europe.

"I think this is a classic situation where Nike's on a run," Paul Swinand of Morningstar said Tuesday on "Power Lunch." "If they just did their analyst day, and they've upped their long-term forecast, they're seeing a lot of future orders acceleration, they're probably going to have a good holiday season."

Still, Swinand said he has some concerns about the athletic stock, most notably its exceptionally high valuation.

"I've got the stock worth 28-29 times forward earnings and I'm the low on the Street. The Street's valuing it over 30 times earnings, that's way above historical [averages]," he said. "I'm worried about the long run making a decent return."

Read More Consumer stocks may turn hot after cold start: Technician

According to technician Craig Johnson of Piper Jaffray, Nike shares looks vulnerable.

Although the stock has followed a multi-year uptrend, Nike shares currently look to be "overbought," says Johnson.

"I think the odds are, yes you will get that pullback and you'll get a better entry point," he said Tuesday on "Power Lunch."

But within the general industry, companies like Nike are a good place to look for growth, he said.

"Inside of the consumer cyclical sector, anything athletic, anything footwear, is really where the momentum is at this point in time. And certainly Nike and Under Armour are right there," Johnson said.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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