3 Great Reasons Nike Stock Is A Buy
Zacks Investment Research | Jun 12, 2015 01:21AM ET
Nike Inc (NYSE:NKE) is one of the largest and most well known sports apparel brands in the world. With a market cap of a little over $87.21 billion, they are a giant. Nike’s principal business activity involves the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. The company sells its products to retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in numerous countries around the world.
Between its Nike and Jordan Brand lines, the company controls 62% of the athletic footwear brand market share, which is more than four times the combined values of its competitors of Adidas (XETRA:ADSGN), Skechers (NYSE:SKX), and Asics (TOKYO:7936). The company currently has 322 stores in the US and 536 non-US retail stores. Nike can be found is nearly 50 countries worldwide.
With consumers becoming more health conscious and increasing exercise levels, along with the increased popularity of the “casual comfort” fashion style, the demand for sportswear is increasing, and Nike definitely stands to benefit.
This is part of why Nike is such a compelling investment these days, though that is by no means the only reason. In fact, NKE finds itself in the top 13% of all industries, while it is also seeing strong growth prospects as well. Below, we highlight in greater detail three of the best reasons to buy NKE stock now, and how this dominant player in the space could continue to grow despite its already massive size:
1. Strong Growth Numbers
Nike has seen strong sales growth numbers across the board in their regions. As of late, the dollar has been strong against a number of currencies, and in the case of the euro especially, it is not likely that it will continually decrease in worth greatly each quarter, so in this case it pays to view the company’s revenue numbers excluding currency issues.
When using constant currencies, Western Europe saw the greatest growth of any region at 21%, with Greater China in a close second with 17% growth. Central and Eastern Europe increased by 7%, and the company’s emerging markets sector revenues grew 12%.
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