2024-04-15 08:29:25 ET
Summary
- The recent sell-off in Nike stock offers new investors a prime opportunity to purchase a fantastic business with strong growth potential.
- Upcoming catalysts such as the Paris Summer Olympics and Autumn Investor Day should highlight Nike's return to its innovative roots.
- Despite recent challenges, including supply chain disruptions and macro headwinds, NKE has implemented a successful restructuring plan and is well-positioned for long-term growth.
Things have been less than perfect over the recent years at Nike, Inc. (NKE). Since hitting all-time highs in 2021, fueled by the surge in consumer spending, shares have fallen by over 40%, translating to the loss of over $130B in shareholder value. Pessimism hasn't been this extreme for the worldwide leader in footwear and apparel in quite some time. With consumers tightening their spending habits and fears of intensifying industry competition creeping in, many have written NKE off for dead. However, adversity is nothing new for Nike. From the very start, Nike was viewed as an underdog in a fiercely competitive environment. As Phil Knight, founder of Nike, put it, "Like it or not, life is a game," and I wouldn't bet against Nike in this game. Although Mr. market may disagree right now, it's only halftime for Nike, and they are just getting started.
Company Overview
Nike has become a household name around the globe for good reason. The iconic "swoosh" logo is instantly recognizable and one of the most well-known logos worldwide. How's that for brand strength? As the world's largest seller of athletic footwear and apparel, NKE has become the home of top athletes worldwide, such as Michael Jordan, Cristiano Ronaldo, Serena Williams, and LeBron James....
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For further details see:
Betting On The Swoosh: Why Nike Deserves A Spot In Your Portfolio