Is NIKE, Inc. (NKE) the Best Stock Under $100 to Buy?
In this post, we’ll evaluate how NIKE, Inc. (NYSE: NKE) compares to other top stocks under $100 that investors should consider.
According to Wall Street analysts, mid-cap stocks may be poised for strong growth, especially after the U.S. Federal Reserve begins cutting interest rates. Ryan Detrick, Chief Market Strategist at Carson Group, notes that historically, mid-caps tend to outperform once rate cuts are implemented, with small- and mid-cap stocks expected to surge by as much as 20% in the next 12 months—well above large-cap stocks. Additionally, Goldman Sachs points out that mid-caps outperform both large- and small-cap stocks in the year following the first rate cut. As investors anticipate a “soft landing” for the economy, many are looking to diversify beyond the largest companies.
**What Happened in Q3 2024 and What’s Ahead for Q4?**
Looking at the performance of the market in Q3 2024, the S&P 500 showed mixed results, with a strong performance from both risk assets and safe havens. U.S. markets ended Q3 with record highs, while bonds posted positive returns, and the U.S. Treasury and corporate bonds rallied alongside a decline in yields. According to JPMorgan Asset Management, gold also saw its biggest gain since Q1 2016, driven by expectations of quicker rate cuts and stimulus efforts from China, which supported equity market returns.
As for Q4, JPMorgan forecasts that expected earnings growth, cooling inflation, and easing central bank policies will provide a solid foundation for risk assets. Wall Street analysts believe mid-caps could continue to see significant growth moving forward.
**NIKE’s Strategic Moves and Market Outlook**
In a significant corporate shift, NIKE, Inc. (NYSE: NKE) brought back Elliott Hill as CEO, a move seen by Wall Street as a strategic reset. Hill, who retired in 2020 from his role as President of Global Commercial and Marketing Operations, is expected to bring much-needed organizational and cultural improvements. The company also rehired Tom Peddie as VP of Marketplace Partners, which should help strengthen its relationships with wholesale partners and refine its distribution strategy.
NIKE’s current focus is on product innovation, rebuilding wholesale relationships, and investing in marketing. After heavily prioritizing direct-to-consumer (DTC) sales in recent years, the company is now renewing its partnerships with retail giants like Macy’s and DSW. Additionally, NIKE’s investment in marketing is expected to emphasize brand ambassadors like Caitlin Clark to drive engagement and boost its market presence.
By targeting innovative products priced under $100, NIKE aims to capture a larger share of the market and appeal to more cost-conscious consumers.
**Is NKE a Top Stock Under $100?**
Overall, NIKE, Inc. ranks 8th on our list of the best stocks under $100 to invest in. While the company shows potential for growth, especially with its strategic focus on product innovation and renewed retail partnerships, our confidence lies in the belief that some undervalued AI stocks offer even greater potential for higher returns in a shorter timeframe. For investors seeking deeply undervalued opportunities, AI stocks trading at less than five times their earnings may hold even more promise than NKE.