Stocks fell on Thursday, following comments from Federal Reserve Chairman Jerome Powell indicating that inflation is on the horizon. The minor correction in prices has left some blue-chip options more affordable, and Nike Inc. (NYSE: NKE) is one of the most promising to consider at the lower price.
Nike has endured the Coronavirus Pandemic thanks to an already vast eCommerce network, the ability to cut costs at physical retail, and the strength of its brand. The company continuously displays the ability to set trends and adapt to changing consumer wants and needs. As a major sponsor of sports events and teams globally, the brand is always in the spotlight. It’s no surprise that Nike is considered one of the world’s most powerful and recognizable brands, alongside examples like McDonald’s and Coca-Cola.
Nike’s power isn’t just in the brand. There are also strong financials to indicate that now is the time to buy. In the most recent quarter, the company reported revenue growth of 9%. eCommerce sales were up by 80%. In the current fiscal year, revenue is expected to increase by at least 15%. Depending on how fast the global Coronavirus recovery moves along, this figure could end up going even higher.
An average target price of $166.43 suggests a significant upside is available on this stock. Buying Nike on the dip could be the best way to take a position in this blue-chip giant.
Key Data:
- 1 Year Price Growth: 77%
- YTD Price Growth: -6.67%
- 3 Month Price Growth: -3.59%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.