Nike's stock has dropped significantly, but its strong brand power and profitability, with a PE ratio of 18, suggest a potential value investment. Director Robert Swan's recent $500,000 share purchase indicates insider confidence, while Nike's 44% gross margin and 20% ROIC highlight continued shareholder value creation. Despite tariff challenges and inventory issues, Nike's strategic "Win Now" plan and substantial cash reserves position it well for long-term growth and stability.
Zacks.com users have recently been watching Nike (NKE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Videos posted by Chinese TikTok users that suggest people should purchase fashion items straight from factories in the country have been surfacing in the U.S. in recent weeks, according to Bloomberg.
NKE's Jordan Brand Air Rev comes up with Flight Lock technology to bring a customizable system of containment to aid golfers.
Nike (NKE -8.23%) famously manufactures products outside the United States, which is undesirable given the added tariffs.
Leading brands NIKE Inc. NKE and lululemon athletica inc. LULU continue to strive for dominance in the competitive sportswear and apparel market.
President Donald Trump's imposition of what he considers "reciprocal tariffs" last week on virtually every other nation sent the U.S. stock into a historically steep sell-off as investors fret about the potential impacts those new import taxes will have on inflation and economic growth. The big uncertainty is how these tariffs and the trade war that they are triggering may reorder the global economy.
Despite recent economic challenges and tariff impacts, Nike's stock has dropped significantly, making it an attractive buy for long-term investors seeking quality. Nike's revenue and profits have declined due to inflationary pressures and high tariffs, but the company remains a high-quality industry leader. The footwear market is heavily impacted by tariffs, but Nike's global presence and potential long-term adjustments in production locations offer resilience.
Nike (NKE 2.87%) stock managed to post gains Friday despite another big sell-off for the broader market. The company's share ended the day's trading up 3%.
The U.S. is Vietnam's biggest trading partner with $119 billion in goods exported annually.
Bryn Talkington, managing partner at Requisite Capital Management, joins CNBC's "Halftime Report" to explain why she's buying Nike as the market plummets.
Shares of Nike (NKE 3.87%), the world's most popular shoe and apparel brand, dropped 15% earlier this week but have recovered some of these losses as of noon ET on Friday, according to data provided by S&P Global Market Intelligence.