Shares of Foot Locker (FL) - Get Report are 1% higher Monday after the stock was placed on J.P. Morgan's Focus List by analyst Matthew Boss. At the same time, Boss is negative on Nike (NKE) - Get Report , which reports earnings on Tuesday after the close.
Boss has recently visited Europe and he's liked Foot Locker for a long time, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Boss must have liked what he saw when he was there because he was already positive on Foot Locker, Cramer added. As for Nike, the analyst had been positive on the stock and he must have a lot of conviction in his call to be negative on it a day ahead of earnings, Cramer reasoned.
Previously, Nike was really only competing against Under Armour (UA) - Get Report but UA is "woefully smaller" than Nike, he explained. Now all of sudden, Adidas is back and the competition between Nike and Adidas is heating up.
While this may be bad news for Nike, it's not bad news for Foot Locker. "I like the call to buy Foot Locker," he said, adding that he also "likes the call to say, 'you know what? Nike's had a long run, let it cool.'"
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.