NIKE, Inc. (NKE): A Bull Case Theory

We came across a bullish thesis on NIKE, Inc. (NKE) on Value Investing Subreddit Page by Any_Chocolate6194. In this article, we will summarize the bulls’ thesis on NKE. NIKE, Inc. (NKE)'s share was trading at $62.08 as of May 19^th. NKE’s trailing and forward P/E were 20.62 and 29.41 respectively according to Yahoo Finance.

Nike’s global presence is undeniable, from city streets to remote places like Greenland, where kids proudly wear its shoes, reflecting the brand’s deep cultural integration. With Elliott Hill’s return after 32 years, Nike is regaining strong leadership and rebuilding key wholesale relationships, contrasting with the previous era under John Donahoe, who seemed disconnected from the company’s core identity. Nike’s dominance extends to making official jerseys for the MLB, NFL, and NBA, ensuring constant visibility and cultural relevance.

While competitors like Hoka and On are gaining attention, Nike’s enduring brand strength suggests those trends may be temporary. Trade tensions impacting tariffs are overstated, as most of Nike’s production is centered in Vietnam, minimizing China-related risks. Currently trading around $62 with a trailing P/E of 20.6 and a forward P/E near 27, Nike’s valuation appears reasonable for such an iconic brand, especially amid subdued market sentiment. The company’s cautious guidance seems strategic, setting expectations low ahead of a potential rebound. This creates an attractive buying opportunity now, with the stock likely to rise significantly as recovery becomes clear, all while providing a solid dividend yield. Patience with Nike’s stock promises rewarding returns as the market eventually recognizes its true value.

NIKE, Inc. (NKE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held NKE at the end of the fourth quarter which was 75 in the previous quarter. While we acknowledge the risk and potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.