With Nike Inc (NYSE:NKE) shares down 10% to start the year, Virtus Investment Partners' Joe Terranova sees upside potential.
"This is the perfect spot to get back in this stock," Terranova said Monday on CNBC's "Fast Money Halftime Report." "I'm going to buy it on the close."
He told CNBC that he cut his Nike position right before it ran up last year. After sitting on the sidelines for a year, he said the market is giving him an opportunity at current levels.
Nike is trading at a reasonable valuation as the market enters an "endemic environment," which bodes well for the company and its overseas manufacturers, specifically in Vietnam, Terranova said.
Nike is trading around 38 times earnings with a market cap of about $230 billion, according to data from Benzinga Pro.
Terranova also noted that he expects a revival of growth in China amid easing Chinese monetary policy.
Nike's stock has "fallen off significantly, so it allows me to take advantage of a name that I know," Terranova said.
See Also: Nike Whale Trades Spotted
With markets trading at elevated levels of volatility, he recommends investors focus on the stocks that they know well. "Go with what you know," Terranova said, before reaffirming plans to initiate a position in Nike at the end of Monday's trading session.
NKE Price Action: Nike has traded as low as $125.44 and as high as $179.10 over a 52-week period.
The stock was up 0.9% at $147.23 Monday afternoon.
Photo: StockSnap from Pixabay.
