SBUX - Nike: Oversold Value Play That Could Reward Investors In The Long Term
2024-07-18 07:30:00 ET
Summary
- Nike stock has dropped significantly, facing headwinds from financially impacted consumers and high interest rates.
- Despite challenges, Nike's dividend safety is strong, with healthy cash flow and an A-rated balance sheet.
- With a P/E ratio below its historical average, Nike offers potential for strong upside in the medium-to-long term for investors willing to hold.
- You also get paid a well-covered dividend while you wait. Additionally, the drop in share price has pushed NKE's yield above 2%, which may be attractive for some investors.
- Nike has a 2025 price target of $106, offering investors roughly 49% upside for those willing to hold for the medium-to-long term.
Introduction
NIKE ( NKE ) (NKE:CA), one of the world's most recognizable brands, has been getting battered lately, down more than 30% YTD. The company definitely has some issues they have to work through, but I like to consider myself an astute opportunist. I tend to keep a cool head and can usually see through the turmoil to find value in a company after being oversold....
Nike: Oversold Value Play That Could Reward Investors In The Long Term