Down 35%, Is Nike Stock Really a Long-Term Buy?
In this kind of market, one characterized by increasing uncertainty and a risk-averse mentality, astute investors who are willing to remain optimistic over the long term could find some outstanding opportunities to bolster their portfolios. The focus, unsurprisingly, should be on high-quality companies with competitive advantages and solid growth prospects.
One such perennial winner that sticks out is Nike (NYSE: NKE), whose business fits those. With shares down 35% in 2022, is this top apparel stock a buy right now? Let's dive in to find the answer.
According to data from Statista, the global market for activewear is in the neighborhood of $380 billion today. So with trailing-12-month revenue of $47.1 billion, Nike represents about 12.4% of the industry. At first look, this might seem like a small share, but consider that second-place Adidas generated about half the sales of Nike over its trailing 12 months. Therefore, Nike is clearly in a dominant position, and one the business has long held. Plus, there is still a lot of opportunity to take market share.
Source Fool.com
