- Nike stock is up 36 percent this year and is the best-performing Dow stock.
- The athletic footwear and apparel sector continues to grow.
- Nearly two-thirds of analysts say “buy” based on Nike’s performance history.
Nike shares are up over 36 percent in 2018. The company’s rebound has many people wondering if it’s too late to buy the stock and get in on the sportswear giant’s meteoric rise.
Consider these facts about Nike’s recent performance:
- Nike stock was up around 20 percent in 2017.
- NKE is the best-performing stock in the Dow Jones Industrial Average so far this year.
- Nike is currently trading near its all-time high.
- It’s in a high-performing sector. Rivals Under Armour and Columbia Sportswear are both up about 30 percent, year to date, and Lululemon has gained a massive 102 percent increase in share value.
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Nike’s Focus on Connecting With Its Customers’ Social Concerns Is Paying Off
Despite the company’s seemingly secure perch atop the athletic footwear and apparel sector, Nike is not afraid to take risks. It demonstrated its ability to weigh in on social issues without incurring long-term negative impacts:
- Nike’s controversial ad featuring Colin Kaepernick in September 2018 caused the stock to drop slightly, but it quickly rebounded and reached new highs. Since the announcement of the campaign, Nike has gained $6 billion in market value.
- The announcement of the ad campaign generated an estimated $43 million worth of media exposure, according to Apex Marketing Group.
Nike is attuned to the profitable millennial market and doesn’t shy away from hanging its hat on the social issues that this key demographic can get behind. Besides the Kaepernick campaign, the company stays connected to the issues that matter to its customers:
- In May, Nike announced that 75 percent of its shoes and apparel contain recycled material. Air, one of its most popular technologies, is also one of the company’s most sustainable innovations.
- In August, Nike opened its first Nike Live store, billed as a hub for local NikePlus members. The store was designed and stocked based on input from Los Angeles-area Nike aficionados.
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Should You Buy, Hold or Sell Nike Stock?
Nike has been a strong company for decades. That history combined with its recent success has investment analysts taking notice:
- As of Sept. 19, 2018, about 62 percent of the analysts covering Nike rated its stock a “buy,” a higher percentage than recommended buying competitors Under Armour, Lululemon, Columbia and Sketchers. Thirty-two percent recommended holding Nike stock if you already own it, and just 5 percent recommended selling Nike holdings.
- Morgan Stanley expects active apparel and footwear to grow 7 percent worldwide over the next five years, besting total apparel and footwear growth.
- Nike will report its quarterly earnings on Tuesday, Sept. 25, after the market closes, and it is expected to report profits in its first fiscal quarter of 63 cents per share on sales of $9.9 billion.
So, is it too late to invest in Nike? Should you buy now? All indicators say, “Just do it.”
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