Nike is among the world’s leading athleisure brands. Founded in 1964, Nike is a billion-dollar company that manufactures numerous sportswear and equipment. Some of the world’s most valuable and highest-paid athletes like Cristiano Ronaldo and LeBron James are sponsored by Nike.
Everyone from professional-level athletes to average people buy Nike products like shoes, apparel, and sports accessories. However, when it comes to Nike, it is not just the products that are worth investing in but also their stocks. For years, Nike stocks (NKE) have been considered high-performing consumer stocks that numerous investors around the world invest in. Whether you are a stock market enthusiast or an affluent investor, Nike is one company that should be on your radar. If you are yet to invest in this company, here are the reasons that will convince you to buy Nike stocks.
Outstanding Past Performance
Experts often urge people to analyze a stock’s past performance prior to investing in it. Though past performance is no guarantee of future results, it is one of the factors you should consider before investing in a stock.
The outstanding past performance of Nike stocks (NKE) in the last few years makes it worth the investment. If you are a stock market enthusiast, then you must be aware of the fact that Nike stocks (NKE) have performed steadily through varied periods.
Their consumer-centric approach to doing business makes it one of the top companies in the world. Over the years, Nike has emerged as an innovative and trend-setting company that has outperformed most of the other companies in the athleisure sector. In today’s time, it is safe to say that Nike dominates the industry. In 2018, Nike shares fared as some of the best-performing shares. Though in the past, there have been instances when the share prices experienced a decline, in general, Nike share prices have performed well throughout the 21st century.
Positive Earnings Reports
In the sports-apparel sector, Nike has continued to post a positive earnings report. With a significant increase in sales throughout the years, the annual revenue of Nike continues to rise and so does the value of its shares. The current revenue of Nike is $9.95 billion, and it is believed to dramatically increase in the coming years. Most of the investors and market watchers feel confident in the potential of Nike shares and the overall growth of the company.
As per the market forecast, the revenues are bound to accelerate by 7% in the coming months and ensure profitability to the investors. As per the reports, Nike stocks gained 10% in January 2019. The financial condition of both Nike and its stocks are in top condition. In March 2019, Nike stocks outperformed to a great extent. Within just a few months, the stock value of Nike increased by 21%. This proved to be extremely profiting for the investors. By the end of March 2019, Nike closed at 1.24% at $85.23
Investors continue to be confident in Nike shares and it is believed that Nike stock is set to experience a significant surge in the future. The valuation of the Nike stocks done by several stock market experts displays the potential of growth that the company and its shares possess. Nike uses innovative strategies for designing and manufacturing top-selling products, be it Nike sports wear or Nike shoes. The forward-looking approach of Nike makes its long-term growth plan appear promising and profiting. Many growth strategies adopted by Nike in the last few years have paid off. In this sector, Nike continues to be a force to reckon with. Along with the strategies used by Nike, the ground-breaking designs of Nike items and strong consumer spending are reasons to believe that Nike will continue growing as a company and brand.
Nike has adopted a direct-to-consumer approach to business that allowed it to reduce its dependence on third-party retailers for doing business. This business strategy had a huge impact on the value of its shares. Nike sells plenty of its products like Nike shoes and sports accessories directly to the consumers. Due to this change in the way of doing business, the value of Nike shares continues to be on a rise. The sales for Nike products have gone up in numerous countries. Nike uses its online store to sell Nike sportswear and other items to its customers without relying on third-party retailers.
Nike products are undeniably trendy, comfortable, chic and fashionable. However, if you want to achieve monetary gains from the success of Nike, then you should consider investing in Nike stocks. The exceptional performance of Nike over the years, the current valuation of its stocks and the promising future growth strategies make Nike every bit worth the investment. Go ahead and invest in Nike stocks for financial profit.
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