Investors should buy Nike shares as its financial results will improve next year due to new products and internet sales, according to Guggenheim Securities, which reiterated its buy rating on the athletic apparel company.
"Heading into 2017, Nike becomes our Best Idea," analyst Robert Drbul wrote in a note to clients Thursday. "We continue to believe the Nike brand is one of the strongest global brands. In 2017, we expect revenues to reaccelerate and gross margin expansion to resume. We believe ... current levels offer an attractive entry point for long term investors. "
Nike reported better-than-expected fiscal second-quarter earnings on Tuesday. Sales increased 6 percent to $8.2 billion.
Nike shares are down 16 percent this year through Wednesday, making it by far the worst performer in the Dow Jones industrial average in 2016.