Why Nike Is A Strong Buy

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Why Nike Is A Strong Buy

Reasons Why Nike Is A Strong Buy

Nike (NKE) is one of those top stocks which need no introduction. The Nike (NKE) stock has a strong history, but their business is now struggling as of late.

The leadership of the last CEO, John Donahoe, was what caused the problems for Nike (NKE). Under John's guidance, the company focused on its D2C business and performance marketing.

Sports Remain A Growing Market

However, the company failed to make new products or maintain its retail relationships. This led to the mess under which the company is now struggling.

As a result, the new CEO, Elliott Hill, joined the office in September. It's worth noting that Hill has worked at Nike for several high-level positions.

Although the leadership change was good, we have yet to see a response in Nike's (NKE) stock. However, experts believe that the current trading price of Nike (NKE) makes it a good buying opportunity.

The first reason why Nike is a buy is that their problems are fixable! Although the sales growth isn't that growth, but its not something that can't be fixed.

The company has lost its market share to smaller brands. This means the company can easily win back its market share through marketing and new products.

In fact, Nike (NKE) has already managed to return its business to growth during Q2. Also, Nike (NKE) has a lot of new products in the pipeline, which will also boost sales & revenue.

Another reason why Nike is a buy is that the sport is still a strong growing market. There is now more money flowing into the sports industry than ever before!

All of this tells us that Nike can easily stage a strong recovery and even beat the forecasts. It might take them a few quarters to sort things out, but they can easily return to growth.

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