Investing in Nike: A Comprehensive Guide
Nike is one of the largest sports apparel companies in the world, known for its high-quality products and iconic “Just Do It” slogan. As a result, investors tend to consider investing in Nike’s stock. This comprehensive guide will take a look at Nike’s share price, company financials, business strategy, and branding strategy to help you make an informed investment decision.
Nike Share Price
The current Nike share price as of January 2023 is around $126.9 per share. However, it’s important to note that the share price can fluctuate depending on market conditions, company performance, and investor sentiment.
Nike’s branding is synonymous with high-quality sports apparel. The company has established a strong brand identity and reputation through its marketing campaigns, product innovations, and strategic partnerships.
Nike’s iconic swoosh logo and “Just Do It” slogan are known globally as a masterstroke in branding. The “Just Do It” campaign, launched in 1988 by advertising agency Wieden+Kennedy, helped increase Nike’s revenue from $877 million in 1988 to $9.2 billion in 2018, and was named as one of the top 100 campaigns of the 20th century by Advertising Age. The slogan was also listed as the number one slogan of the century by Forbes in 2019! Here’s an interesting fact: The slogan was inspired by the last words of convicted murderer Gary Gilmore, who said, “Let’s do it” before he was executed.
Nike’s Business Strategy
One of Nike’s key business strategies that contributed to its success is a marketing strategy called the scarcity tactic, where a limited number of a products are released or ‘dropped’ at a specific time, making it exclusive and difficult to buy. This strategy creates a sense of urgency among consumers to purchase products. For instance, Nike’s Air Jordan brand, introduced in the 1980s, became one of the most successful and influential shoe lines in history, thanks to this strategy. Little wonder that the scarcity tactic has been adopted by many fashion brands in recent years.
Nike’s Company Financials
Nike’s financials have been consistently strong over the years, with revenue growth, increased profitability, and strong cash flow. The company’s net worth is estimated to be around $197.74 billion, making it one of the most valuable sports apparel companies in the world.
Nike’s Foreign Direct Investment
In recent years, Nike has been actively investing in foreign markets to expand its reach and tap into new markets. This has resulted in increased revenue and growth for the company. It’s important to consider the risks and rewards associated with foreign markets when investing in Nike.
Investing in Nike Stock
Investing in Nike’s stock can be a profitable opportunity for long-term investors. However, it’s important to thoroughly research the company, its financials, and market conditions before making an investment.
Analysts’ opinion on whether you should invest in Nike
When it comes to investing in Nike, financial analysts have generally been positive about the company’s stock. Many believe that Nike’s strong financial performance, brand power, and digital innovation will continue to drive growth in the future. For example, Goldman Sachs has an “overweight” rating on Nike’s stock per its January 2023 report, with a price target of $133 per share, while Credit Suisse has an “outperform” rating on the stock, with a price target of $132 per share.
Note: When a stock receives an outperform rating, it means analysts expect this stock to produce better returns than the overall market, a particular financial index, or other companies in the same industry.
How to invest in Nike stock in India
As of writing this article in January 2023, Nike’s share price is $126.9, and Nike’s company net worth is $198.69 billion. Here are your options for investing in Nike from India:
1. Invest in Nike directly
You can invest in Nike from India by opening a US brokerage account either through technology platforms like Vested, or a foreign brokerage that has a direct presence in India. At Vested, we aim to enable you to invest easily in US stocks. When you invest, you do not need to incur any brokerage fees. The Vested process is entirely paperless and can be completed within minutes. All you need is:
- Your PAN number
- An image of your PAN card
- An address proof
2. Invest in ETFs that hold Nike stock
Another way you can invest in Nike stock from India is through an ETF. ETFs are a collection of many stocks/bonds traded under one fund. They are similar to mutual funds. However, the difference is that ETFs are traded on the stock exchange with real-time pricing. ETFs provide an easy and affordable way to get exposure to a sector or a group of companies. One option to invest via ETFs is to buy an ETF on a platform like Vested.
For example, Vested allows you to invest in Vanguard Total Stock Market ETF (VTI), the largest ETF holder of Nike Stock (NKE), with approximately 38.31 million shares. The ETF with the largest allocation to NKE stock is Consumer Discretionary Select Sector SPDR Fund (XLY), with a portfolio weight of 4.90% as of Jan 2023 – also available to invest on Vested.
In conclusion, investing in Nike’s stock can be an opportunity to be considered for long-term investors. By understanding Nike’s share price, company financials, business strategy, and branding strategy, you can make an informed investment decision. However, it’s important to thoroughly research the company, its financials, and market conditions before making an investment.