Reasons why Nike could be a good addition to your investment portfolio:
Nike is the biggest sporting goods manufacturer in the world both in terms of market capitalization and in terms of revenue. Nike’s principal business activity is the “design, development, worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services”. Nike currently has approximately 76,700 employees worldwide (including retail and part-time employees). Here you can find an investment analysis of Nike. .
Here are some reasons why Nike could be a good addition to your investment portfolio:
- Nike has a higher operating margin than almost all of its competitors.
- In Forbes Magazine (2020), Nike is ranked as the 13th most valuable brand in the world.
- Nike has higher revenue and a higher EBIT than any of its competitors.
- Nike has an enormous economic moat in comparison to its competitors.
- 51 out of the 100 best paid athletes in the world are currently endorsed by Nike, which helps Nike enormously strengthen its brand which ensures earnings in the future.
- If Nike continues to grow and can raise its dividend above 13.5% per year, Nike’s dividend could be doubled about every 6 years.
- Nike has an organic growth rate of about 10% per year on average.
- Nike’s brand value, its enormous profit (which allows Nike to spend more on marketing and in the innovation of new products), and the endorsement of some of the best sports athletes in the world, enable Nike to create an enormous economic moat.
- However, Nike has a high price-earning ratio compared to some of its competitors. The high price-earning ratio shows that the price of Nike stock is high.
Here you can find an investment analysis of Nike. Additionally, you can find the investment analysis of other companies listed on the stock market.
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