{"id":216906,"date":"2019-03-20T06:45:20","date_gmt":"2019-03-20T10:45:20","guid":{"rendered":"https:\/\/insidebitcoins.com\/?page_id=216906"},"modified":"2022-03-16T14:58:54","modified_gmt":"2022-03-16T18:58:54","slug":"nike","status":"publish","type":"page","link":"https:\/\/insidebitcoins.com\/buy-stocks\/nike","title":{"rendered":"Buy NIKE Stock: How To Invest In NKE And What To Look Out For"},"content":{"rendered":"
<\/a><\/p>\n If you want to know if NIKE’s stock price is going to rise, start by counting how many professional sports players are wearing NIKE shoes. Celebrity endorsements are a powerful marketing tool that have helped NIKE grow into the world’s largest seller of athletic footwear and apparel. As celebrity endorsements become more expensive, NIKE is rebooting with a digital strategy to increase profitability.<\/p>\n This guide looks at how to assess NIKE’s future growth opportunities, value NIKE stock, and find the best NIKE stockbrokers as the sneaker maker goes digital.<\/p>\n\n <\/a><\/p>\n When deciding whether to invest in NIKE stock, you need to understand the power of celebrity endorsements. After the Obamas signed a deal to make a TV series with Netflix last March, the price to buy Netflix stock<\/a> soared past that of Disney stock<\/a> for the first time ever. But when foul-mouthed food chef Gordon Ramsay promoted the Pixel 3, the Google stock price <\/a> only had a small bounce up.<\/p>\n So how should you value NIKE – a sports brand whose celebrity athletes have become legends synonymous with the brand? Unfortunately, sports greats like Kobe Bryant are not super heroes who can save a badly managed marketing campaign or unpopular shoe.<\/p>\n In 2016, NIKE stock was the dog of the Dow – the lowest performing stock among the industrial index. But like its sports legends, NIKE has made a comeback. In 2017, NIKE introduced a new digital strategy and is on track to becoming a more profitable company.<\/p>\n su_quote]Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for NIKE’s next wave of long-term, sustainable growth and profitability. Mark Parker, Chairman, President and CEO, NIKE [\/su_quote]\n<\/p> Turning out a top performer with digital commerce<\/strong><\/p>\n NIKE stock is on a sprint rising 34.5 percent over the year propelled by digital commerce, which grew sales 41 percent in Q2 2019. The SNKRS app is becoming the centre of the NIKE offline and online retail experience. Customers gain access to exclusive virtual shopping experiences from both online and offline shopping venues.<\/p>\n A purchase of the newly released AirMax 720 shoe, for example, unlocks access to the 720 Air Store with exclusive merchandise and chat time with Manchester City footballer Raheem Sterling. The shoe is already the top selling sneaker worldwide.<\/p>\n High international sports gear growth<\/strong><\/p>\n International sales are growing at a good clip of 21 percent. On China’s biggest shopping day of the year Singles Day, NIKE was the number one sports brand on Amazon’s Tmall. Greater China has delivered 18 consecutive quarters of double digit growth for NIKE. The sneaker maker is producing shoes at a lower price to capture more global sales.<\/p>\n Self-lacing sneakers<\/strong> <\/a><\/p>\n Malfunctioning shoes<\/strong><\/p>\n NIKE can charge a premium price for the shoes it sells to athletes. When these top-performing shoes do not perform, the impact can hit NIKE stock. When the NIKE trainers of a college basketball star at Duke University split in a recent game, the NIKE share price fell one percent.<\/p>\n A more serious faulty footwear problem has arisen with the $350 new self-lacing Adapt BB shoes. The trainer automatically laces up with a command from the NIKE smartphone app. Customers are being left left-footed when only the right shoe laces up.<\/p>\n Rising expenses<\/strong><\/p>\n NIKE is taking a page from Apple and slimming down its retail operations. In 2016, the sportswear maker sold its merchandise across 30,000 retail stores. The new concept is to have 40 retailers providing differentiated services.<\/p>\n The company has opened flagship stores called Innovation Houses in Tokyo, New York and Shanghai. In delivery, NIKE is slashing inventory and delivery expenses with its 2X Speed strategy. An ambitious recycle and reuse program includes a hybrid leather product that is cutting costs and carbon emissions.<\/p>\n High celebrity reputational risk<\/strong> That’s why NIKE has Kobe Bryant in a $1 billion exclusive lifetime contract. Like Michael Jordan’s Jordan, he could end up a subsidiary of NIKE one day. Meanwhile Jordan, an Oscar winner for Dear<\/i> Basketball<\/i>, has been removed from a movie jury under pressure from women’s groups following the resurfacing of a 2003 rape allegation. As NIKE invests in a separate women’s division and Unlaced online site, the new allegations pose a high public relations risk.<\/p>\n Investors have been bullish on NIKE stock since quarterback Colin Kaepernick was made the Just Do It celebrity endorser in 2018. But can investors justify a 2.5 times increase in the company’s price-to-earnings (P\/E) ratio in 2018? The stock of NIKE is highly valued at a P\/E ratio of 67 versus 25 for the apparel and footwear industry (CSIMarket).<\/p>\n What’s happened at the footwear industry’s house of innovation? NIKE’s earnings-per-share (EPS) ratio in 2018 has fallen 42 percent primarily due to a high tax expense in 2018, while the stock has risen.<\/p>\n Valuing the world’s largest footwear company on a price-to-sales basis provides a more down-to-earth number. NIKE has a P\/S ratio of 3.5 versus 2 for its peers. NIKE posted sales growth of 5 percent in 2018 while the overall industry has posted negative sales growth. NIKE works hard to preserve shareholder value.<\/p>\n The company has done seven stock splits since it was listed as a publicly-traded company in 1980 and aggressively bought back NIKE shares over the years to lift NIKE’s stock price. A new $15 billion share buyback program was authorized beginning in 2019.<\/p>\nFind in This Article<\/h3>\n
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Should you invest in NIKE?<\/span><\/h2>\n
Pros of buying NIKE stock<\/h3>\n
\nNew innovative products are driving 80 percent of NIKE’s new growth. NIKE Air models continue to be top selling brands and new models are being added. In running, a $5 billion business, the Vaporfly 4% became the dominant running shoe in marathons in 2017. Self-lacing shoes sold out on day one. Eight of the top 10 best-selling shoes in 2018 were made by NIKE.<\/p>\nCons of buying NIKE stock<\/h3>\n
\nA celebrity can send sales catapulting but with sales tied to reputation, one slip up and a brand could be wiped out in a day. When Jamie Foxx boosted iPhone S6 sales, it was the perfect time to buy Apple stock <\/a> on rising revenue. But Foxx was soon mired in scandal for hyping an ICO.<\/p>\nNIKE Stock: Current Prices and Summary<\/span><\/h2>\n