Nike is the stock to watch since Foot Locker (FL) - Get Report reported an "amazing quarter" last week, TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment. When Foot Locker is doing well, Nike is doing well, he reasoned.
That's the vibe investors got when listening to the conference call, too. Shares of Nike are up 4% over the last three trading sessions, although Foot Locker has been red-hot, up almost 30% in the same span. Cramer pointed out that upgrades continue to pour in for Foot Locker, with Wells Fargo and Wedbush analysts assigning price targets of $42 and $49, respectively.
It also might be time to look at Under Armour (UA) - Get Report (UAA) - Get Report , which should begin to rebound higher, albeit slowly. If Under Armour starts seeing an uptick in business, we know there's a "rising tide" in athletic shoes and gear, explained Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
- Foot Locker Reveals Adidas Is Seeing a Stunning Trend That Nike Should Love
- Nike Shareholders to Propose Tax Principles After Paradise Papers Leak
But be aware that this was really a breakout quarter for Nike, he said. And don't think the recent rally is it. Nike can continue higher from here as it has lagged the Dow Jones Industrial Average through 2017, Cramer concluded.
More of What's Trending on TheStreet:
- Tesla's Stock Could Become a Buy Again if It Hits This Key Price
- Bitcoin Smashes Past $8,000
- Market Is Not Overvalued, Options Expert Says
- Amazon Could Gain 20% by Entering Health Care
At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.