I still believe that a recession this year or next — if it appears — will be brief and shallow. Yet, the market has priced in a hard landing caused by the Fed raising interest rates too fast, asserts Mark Skousen, editor of Home Run Trader.

So, I view the recent market selloff as a buying opportunity. And you can take advantage of it by picking up a few great companies at a discount.

Take Nike (NKE), for example. Named after the Greek goddess of victory, Nike is the world’s best-known creator of athletic footwear, apparel, equipment and accessories. It also owns several affiliate brands, including Converse, Hurley and Jordan.

Virtually everyone recognizes the company’s famous “Swoosh” logo and its motto: “Just Do It.” Nike sells its products online, through thousands of retailers worldwide and through more than 700 company-owned shops in more than 50 countries.

The company’s annual revenue has topped $46.7 billion. Yet, in the past eight months, Nike’s share price has plunged from over $179 to around $106 today. Why? Like most retailers, the company has been negatively impacted by supply chain problems and higher costs.

They have caused sales to flatten and earnings to decline slightly. (This is true even though the company has maintained a 13% profit margin, and management is earning a whopping 43% return on equity.) This slowdown will prove to be entirely temporary, in my view.

Nike’s products retain their broad appeal. And the company’s widespread brand recognition will allow it to pass along higher costs to consumers. The firm also has a strong balance sheet with more liquid assets than debt. Its cash on hand tops $13 billion.

I estimate that earnings per share at Nike will soar from $3.79 this year to more than $5.50 next year. And that may prove to be too conservative. Director John Rogers Jr. seems to agree. This insider just purchased 10,000 shares of Nike at $102.96 per share.

Even if the stock takes a year to trade back to its 52-week high, that would be a 69% gain from here in a very high-quality stock. So, pick up Nike at market. And enter a sell stop at $80 for protection.

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