Nike is a good turnaround play and likely deeply undervalued as current revenue and margin declines are temporary and self-induced by management actions while the brand sustains premium pricing.

Nike traded up to around $180 per share on its peak and ever since then it's been tumbling down this mountain.

The next turnaround play we get to is Nike. Now, this one like Adobe's down big for Nike's revenue was climbing for years and then now it's decreasing. The revenue's actually declined over the past couple of years.

The EBIT of the company's in a decline, the net income of the company's in a decline, the free cash flow of the company's in a decline.

Now, you may look at this company and say, "Well, Nike's not a great stock because the numbers are going down. It's in decline and it still trades at a relatively full valuation.

It's trading at a 24 forward PE ratio, a 3.6% free cash flow yield."

But, I believe that's the wrong way to look at Nike. The big reason that Nike looks expensive today is because these declines in these numbers are temporary and they're actually self-induced by Nike's management.

Nike right now is going through a huge change in their execution structure, the way that they run their business. They're getting rid of old inventory. They're not selling everything just digitally.

They're going back to their normal logistics and retailers. They're actually offloading a lot of inventory, a lot of old product that they're substantially discounting to get them off of the shelves and off of their books.

The question for investors is if the brand will sustain. If you believe Nike still has a solid brand that can charge a premium and margins will eventually tick back up after these changes, then Nike is likely deeply undervalued today and a good turnaround play.