I received many questions about adidas (ADDYY) when I analyzed Nike (NKE) in June. My conclusion for Nike was overvaluation from a fundamental perspective alongside high risk because:
- a growth slowdown is happening and what makes things worse
- the management is attempting to conceal the slowdown with financial engineering
- Nike has an extreme PE ratio which makes the stock even riskier
In this article, I'll discuss adidas stock as an investment opportunity and compare it to Nike and explain why long-term investors will continue to be better off investing in adidas