Nike Concerns Mounting: Analyst
With what could almost be considered a cult-like following, Nike has long been a champion in the sportswear market.
The Oregon-based company has a roster of high-profile celebrity endorsements from athletes such as Lebron James and Cristiano Ronaldo, and the company was the official outfitter of Team USA at last month's Olympic Games.
And yet, the stock has been under pressure this year.
Shares of Nike are down 11% year-to-date, and the company missed analysts' revenue expectations when it reported quarterly earnings in June.
The stock's trend lower has not been lost on the street.
Today Canaccord Genuity's Camilo Lyon -- who has a hold rating on Nike -- lowered his price target on the stock to $52. It had previously been $52.
Lyon's chief concerns are slowing futures orders and increasing competition from brands like Under Armour and Adidas. He joined the "Halftime Report" to discuss why he's staying on the sidelines for now.
Lyon argues that not only is Nike facing growing competition from Adidas and Under Armour, but that it's "the beginning of this trend that's starting to turn away from Nike."
The company's lack of inspiring new products is also weighing on the company's bottom line, Lyon believes.
"They're definitely going through an innovation lull," he said on the "Halftime Report".
Lyon also notes Nike's slowing sales.
In an effort to maintain sales growth, Nike has reduced the price on its Lebron shoes. This comes as Nike-competitor Under Armour has seen great success with its Curry basketball shoes.
And the war for shelf space at sports-retailers is heating up. Just this morning Finish Line highlighted the sales success of the Steph Curry shoes when reporting quarterly earnings results.
While no one on the desk is buying Nike at these levels, they also aren't selling.
Jon Najarian, Jim Lebenthal, and Josh Brown would all buy the stock on a pullback.
The company is set to report earnings next Tuesday, so the traders will be closely watching how the stock reacts.
Trader disclosure: On September 23, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:
Steve Weiss: Long: AAL, BAC, HZNP, MU, NBIX, OA, SRPT Calls:AGN Long Puts: SRPT
Jim Lebenthal: Long: AAPL, BA, C, CSCO, DCO, DIS, EEQ, GM, INTC, JCP,KMI, MPC, ORBC, PFE, QCOM, QRVO, SPLS, TIF, TRN, TWX, WGO
Jon Najarian: Long Stock: GSAT, XON Long Calls: AAPL, BMY, COG, CS, CUX,EPD, FIT, FSLR, GLD, HZNP, KATE, INTC, MGM, MSFT, NFLX, NVAX, OAS, QRVO,S, SCHW, SWKS, TWTR, USO, WLL
Josh Brown: BROWN Long AAPL, AMGN, BMY, CORE,DE, DNKN, GE, GOOGL, MA, NVDA, SAM, SHAK, TWTR, XLE, YUM, WDAY