How Do You Buy Stock In Nike __LINK__
That inventory spike is driven by short-term issues, too, like sped-up holiday season deliveries and the temporary closure of factories in Vietnam and Indonesia a year ago. Nike will still have to continue sacrificing profitability to work through that extra inventory, and that's a big reason why the apparel stock is down this year.
how do you buy stock in nike
In the meantime, investors are getting a great discount on Nike's stock in exchange for that rocky short-term outlook. You can own Nike for three times annual sales, a valuation that hasn't been around since the early days of the pandemic. Lululemon, for context, is trading at 5.4 times sales.
It is possible that Nike's valuation will contract further and that investors will get a chance to buy shares of this global industry leader at a deeper discount. But don't let that prospect keep you away from the stock now. It's a good practice to try to build up a stock position over time, after all, with a few purchases spread out so you minimize the risk of buying just before a market swoon.
Unsurprisingly, this has contributed to the growth-oriented Nasdaq Composite's 24% year-to-date plunge. Shares of the dominant footwear and apparel company Nike (NKE 2.12%) have fared even worse -- down 35%. This raises the following question: Could buying Nike stock be a nothing-but-net swish for growth investors at the current share price? Let's dive into Nike's fundamentals and valuation to find out.
Nike appears to be fully priced at its current $108 per share. This is supported by a trailing-12-month (TTM) price-to-earnings (P/E) ratio of 28.8. For context, this is a bit higher than the company's 10-year median TTM P/E ratio of 28.1. But the growing impact of Nike's direct-to-consumer and digital sales channel on its sales arguably justifies a slightly higher valuation multiple than it has generally commanded in the past. This is why buying the dip in Nike stock looks like it could be a smart move for growth investors over the long run.
The combination of a solid growth rate and a relatively low price has inspired many investors to purchase Nike stock. The athletic footwear company has an internationally recognized brand and a pattern of strong performance. Nike can be a good stock to buy as a beginning investor or to add to an existing portfolio. You can buy Nike stock either directly from the company or through a brokerage firm.XResearch source
Investing can be seen as a complex subject, but there are ways to make your investments more accessible. Many stock trading platforms simplify the investing process and have democratized access through the elimination of stock commissions.
That means you can buy one share at a time without having to fork over a per-trade commission. Some apps will allow you to set aside money regularly to buy fractional shares, lowering your barrier to investing in these growth stocks even more.
I would also consider conducting your own stock research and using a stock analysis app to vet any investments recommended by these services. Likewise for Nike stock to see if its risk profile and investment objectives meet your broader investment portfolio goals.
The best stock investing apps for beginners focus on simplicity, functionality, educational and customer support and cost. I can help you find one at the bottom of this section which makes the best fit for your investing needs.
Some brokerages offer sign up bonuses to give your investing journey a boost. Learn about getting free stocks from online brokers for signing up and funding your account.
Whether you trade penny stocks on Robinhood or Webull for minimal money or trade whole shares of Berkshire Hathaway, you will need to understand the unavoidable fees charged in some instances.
These fees may vary by brokers. Be sure to check the fine print if these costs to invest appear too great or affect your overall investment decision. They should be very minor and not dramatically impact your inclination to invest in a stock or not.
If you live in South Africa, India or the UK and think Nike is a great company, you might find it difficult to buy stock in the company without using Contract For Differences (CFDs), or a financial arrangement made using financial derivatives that settle differences between open and closing trading prices with cash.
As an employee at Nike, you have access to a wealth of benefits. Some of them, such as health insurance and a 401(k) plan, are relatively standard. That said, working at a larger, publicly-traded company does afford some additional perks. One of those perks is access to the Nike employee stock purchase plan (ESPP).
Consider your opportunity costs as you evaluate whether to hold company shares over the long-term, such as the paydown of debt or a diversified portfolio. What impact would the fluctuation of the stock price have on your goals?
Yet it's a more complicated picture than that, and as much as there is good news in Nike's report, investors would do well not to rush into the stock. It's never good to buy or sell a stock because the crowd is doing so, and smart investors know to look more closely at what's occurring.
If a recession comes next year as many analysts and economists predict, and Nike eases up on its promotional efforts, sales could be hurt, which could weigh heavily on its stock again. And if it keeps discounting, margins will suffer.
But Nike isn't a bad stock to own. Investors shouldn't care so much about trying to time a stock's top or bottom, but rather should try to own a portfolio of quality companies, and hold for the long term. Still, don't ignore valuation -- just make such metrics part of your overall decision process.
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends Foot Locker and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
I could be characterized as a safety first investor. My primary focus is on dividend bearing stocks. I seek a degree of safety in my investments by concentrating on companies with competitive advantages and strong balance sheets.
I am a also value / buy and hold investor. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. My valuation requirements, combined with the high quality companies that I often highlight mean many stocks I rate as a hold perform well over the long term. Readers should consider this when weighing my buy/hold/sell recommendations.
Simple. Thrifty. Living. An online personal finance Web site did some intriguing research on what would have happened if you had put your money into a particular stock back when companies put out significant new products instead of buying that new product.
Reporting on the stock's standing is Brian Schwartz of Oppenheimer, who noted that the company's decent performance could pick up as the year progresses, due in part to digital media price increases. Moreover, the software firm is experiencing healthy demand and promising annual recurring revenue metrics.
Deutsche Bank on Thursday lifted Nike's (NKE) price target to 126 from 99. Telsey Advisory Group on Wednesday maintained an outperform rating for Nike and lifted its price target to 130. UBS, meanwhile, named Nike stock one of its "highest conviction" picks for 2023.
Sentiment was negative in Micron stock Thursday after Goldman Sachs downgraded group peer Western Digital (WDC) to sell from neutral. Goldman also lowered WDC's price target to 31 from 43.
Micron reports Wednesday after the close. With the stock close to 50% off its high, a lot of bad news has been priced into the stock already. But MU stock is still in a downtrend, hurt by repeated signs of institutional selling that have knocked its Accumulation/Distribution Rating down to D-.
Uniform maker Cintas has been an outstanding price performer in the stock market. But the stock fell through its 21-day exponential moving average Thursday in heavy volume. The weakness came after a heavy-volume breakout from a shallow cup base on Nov. 10.
General Mills and Toro have also been showing relative strength ahead of results. GIS stock closed well off lows during Thursday's sell-off, paring a 2% loss to just 0.4%. Results are due early Tuesday.
First, identify top-rated stocks with a bullish chart. Some might be setting up in sound early-stage bases. Others might have already broken out and are getting support at their 10-week moving average for the first time. And a few might be trading tightly near highs and refusing to give up much ground. Avoid extended stocks that are too far past proper entry points.
In options trading, a call option is a bullish bet on a stock. Put options are bearish bets. One call option contract gives the holder the right to buy 100 shares of a stock at a specified price, known as the strike price.
Put options are for weak performers with bearish charts. The only difference is that an out-of-the-money strike price is just below the underlying stock price. A put option gives the holder the right to sell 100 shares of a stock at a specified price.
Look for a strike price just above the underlying stock price (out of the money) and check the premium. Ideally, the premium should not exceed 4% of the underlying stock price at the time. In some cases, an in-the-money strike price is OK as long as the premium isn't too expensive.
This options trading strategy lets you capitalize on a bullish earnings report without taking too much risk. Risk is equal to the cost of the option. If the stock gaps down on earnings, the most you can lose is the amount paid for the contract.
When Nike stock traded around 107.90, an out-the-money weekly call option with a 108 strike price (Dec. 30 expiration) came with a premium of around $4.55 a share per contract, or 4.2% of the underlying stock price at the time. 041b061a72