NEW YORK (TheStreet) -- Shares of Finish Line (FINL) closed higher on heavy trading volume Wednesday as Cowen said that the athletic retailer could benefit from Nike's (NKE) sliding dominance in the North American sports apparel market, Barron's reports.
Late yesterday, athletic apparel maker Nike posted higher-than-expected earnings and revenue for the fiscal 2017 first quarter. But futures orders increased 7% in the period, lower than analysts' projections for growth of 8.3%
"We think the North American market in particular is being impacted by the brand resurgence of Adidas (ADDYY) given its increasing visibility and strong product cycle, and ongoing competition with Under Armour (UA)," Cowen wrote in a note earlier today.
The firm also said that Nike's North American revenues climbed 6% in the fiscal 2017 first quarter. But that fell short compared to high-single digit to low-double digit growth throughout fiscal 2016, the firm added.
"Foot Locker (FL), Finish Line and Dick's Sporting Goods (DKS) should all benefit from the ongoing athletic cycle and increased brand diversity, lessening reliance, to some degree, on Nike," the firm said, according to Barron's.
About 1.23 million shares of Finish Line traded today vs. its 30-day average volume of about 1.09 million shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B on Finish Line stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: FINL