For most investors, the change in a stock’s price over time is important. Not only can this impact your investment portfolio, it can also help you compare investment results across sectors and industries.
Fear of Running Out, or FOMO, also plays a role in investing, especially with particular tech giants, as well as stocks popular with consumers.
What if you had invested in Nike (NKE) ten years ago? It might not have been easy to hold onto NKE all this time, but if it was, how much would your investment be worth today?
Nike’s business in depth
With that in mind, let’s take a look at Nike’s main business drivers.
Headquartered in Beaverton, OR, NIKE Inc. was incorporated in 1967. The company is engaged in the design, development and marketing of footwear, apparel, sports equipment and accessories, and services for men, women and children in the whole world. With the help of a strong portfolio of brands including Nike Pro, Nike Golf, Nike + and Air Jordan, it offers premium, well-designed, high-quality products in line with the latest customer trends. NIKE is the global leader in athletic sports footwear, apparel, equipment and accessories, with operations in more than 160 countries.
Nike’s ‘swoosh’ logo and ‘just do it’ slogan are widely recognized around the world, while its association with famous athletes, such as Michael Jordon and Roger Federer, as well as top professional and university teams , ensures strong brand recall in the US, UK, Japanese and Chinese markets.
The company’s products include six key categories: running, NIKE basketball, Jordan brand, soccer, training and sportswear (sports-inspired lifestyle products). It also offers products designed for children, as well as for other sports and recreational uses such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling. , walking and outdoor activities.
The company sells its products to shoe stores; sporting goods stores; stores specializing in sports; department stores; skate, tennis and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms (known as “NIKE Direct”), independent distributors, licensees and sales representatives. With the help of its retail stores in the United States and abroad, Nike sells its products to more than 23,000 retail accounts in the United States and to more than 24,000 retail accounts outside of the United States. from the United States to reach a wide range of customers.
Nike currently reports its operating results under 2 segments, namely NIKE Brand and Converse segment. The NIKE brand is now divided into four divisions, primarily on a geographic basis: North America, Europe, Middle East and Africa (EMEA), Greater China and Asia-Pacific and Latin America (APLA).
Anyone can invest, but building a successful investment portfolio takes research, patience, and a bit of risk. So if you had invested in Nike ten years ago, you are probably feeling pretty happy with your investment today.
By our calculations, an investment of $ 1,000 made in June 2011 would be worth $ 6,948.10, or a gain of 594.81%, as at June 30, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 228.27% and the price of gold rose 12.90% over the same period.
Analysts are also forecasting more upside for NKE.
NIKE shares rallied significantly after posting spectacular results in the fourth quarter of fiscal 2021 and provided a bullish outlook for fiscal 2022 and beyond. This has led him to overtake the industry in the past three months. NIKE sales and earnings exceeded estimates and improved year over year in the current quarter. The good results can be attributed to the return of sports activity, the reopening of stores, the strength of wholesale and digital growth due to the permanent shifts to digital and health and wellness. In addition, strong customer relationships through compelling brand experiences on NIKE Jordan and Converse, product innovation and the expansion of the digital advantage were key drivers. However, high SG&A spending with the return of sporting events partially detracted from results. A slowdown in Greater China due to ongoing boycotts has been headwinds.
Shares have gained 15.94% in the past four weeks and there have been 10 revisions to higher earnings estimates for fiscal 2021 compared to none lower. The consensus estimate has also increased.
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