I Love the On Holding Story, but Right Now, I'll Take Nike
They may be in the same business -- athletic apparel and footwear -- but On Holding's (NYSE: ONON) and 's (NYSE: NKE) stories have been dramatically different of late. On shares rallied more than 50% in 2023 on what will likely end up being top-line growth of nearly 58%. Conversely, Nike shares tumbled a bit, dragged down by tepid sales growth and a surprise mid-year earnings miss. Analysts' current views of each company suggest more of the same disparity is in the cards.
Given the choice between the two right now, however, I'd pick a new position in Nike stock over opening one in On Holding. Nike has more net upside, largely because too many people are looking at the recent past rather than the foreseeable future. Nike boasts four distinct bullish arguments that set the stage for a better 2024.
Don't misread the message. Investors have good reason to be a bit suspicious of Nike right now. A superficial glance at its results from its fiscal 2024 second quarter (which ended in November) indicates revenue only grew 1%, for instance. The athletic apparel brand also dialed back its full-year sales outlook, pointing to intensifying macro headwinds.
Source Fool.com
Nike Inc. B Stock
The stock is one of the favorites of our community with 46 Buy predictions and 3 Sell predictions.
With a target price of 115 € there is a positive potential of 30.76% for Nike Inc. B compared to the current price of 87.95 €.
