Nike Stock Is at Its Cheapest in a Decade. It Will Make a Comeback. -- Barrons.com
Nike stock, to use a sports metaphor, is getting blown out. But with a brand as good as the swoosh, you can always count on a comeback.Nike will eventually take advantage of its enormous marketing war chest and upcoming events -- including the Paris Olympics opening Friday -- to right its mistakes. For now, investors can pick up the stock at its cheapest price in more than a decade.Barron's was among those caught off guard by Nike's woes. We recommended the stock to readers earlier this summer. Still, given Nike's enormous strengths -- including a globally recognized brand, marketing prowess, and enormous ad budget -- we think we were early, not wrong.While Nike has since re-established many wholesale relationships, it compounded the error by letting newcomers like Hoka and On gain a foothold in the core running shoe market. Shares of Hoka maker Deckers Outdoor are up 26% this year. Those of On Holding AG have gained 46%.
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