BB&T Analyst: Nike Good, But Under Armour Best Pick

Nike Inc NKE reported better-than-expected 2015 third-quarter results last Thursday after market closing, following which shares of the company spiked up on Friday, making all-time highs. Corinna Freedman, BB&T footwear/apparel analyst, was on CNBC recently to weigh in on Nike's numbers and to discuss why Under Armour Inc UA is her top pick in the space.

Nothing To Poke Holes At

Freedman was asked what she makes out of this quarter's numbers from Nike. She replied, "Great underlying fundamental trends. We think investors are going to look past the top-line miss. Gross margins were 40 basis points better than guidance, and the features accelerated on the tier basis. So, we don't see anything to poke holes at in the numbers, but we are waiting guidance, which is going to come out during the conference call."

Less Impact Of Strong Dollar

On the strong dollar impacting Nike's earnings, Freedman said, "They are hedged and we do think that this is a bottoming of that trend. This quarter was three points worse than we expected. We think they'll guide maybe more conservatively on top-line going forward and investors will be braced for that going forward in a better way."

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Under Armour: A Better Play

Freedman revealed Under Armour as her top pick in the sports and active wear segment, saying, "With the top-line trends there. You don't have any FX exposure. Their international division is only about 10 percent versus Nike, which is a 40 percent. So it's a better play, and it's been pretty strong, growing at three times what the market is growing at right now."