1 Stock Down 60% That's a No-Brainer Buying Opportunity in 2025

Core Viewpoint - The article highlights that despite the S&P 500's 51% increase over the past 24 months, Nike's stock is down 60% from its peak, presenting a potential buying opportunity for long-term investors [1][2]. Group 1: Company Performance - Nike holds a dominant position in the global athletic footwear and apparel industry with a 16.4% market share [3]. - The company has faced challenges leading to a decline in revenue and net income, with sales and net income down 8% and 26% respectively in the second quarter of fiscal 2025 [4][9]. - The stock's decline is attributed to a loss of investor confidence, as it has dropped 60% since November 2021 [9]. Group 2: Competitive Advantages - Nike's powerful brand and storytelling ability resonate with consumers, maintaining its relevance over decades [5]. - Partnerships with top athletes and major professional sports leagues enhance Nike's exposure to a broad audience [5]. Group 3: Leadership and Strategy - Elliott Hill, the new CEO, brings a fresh perspective, which is essential for Nike's recovery [6]. - A focus on winning back wholesale accounts and enhancing product innovation is crucial for meeting consumer preferences [7][8]. Group 4: Valuation and Investment Opportunity - Nike's current price-to-earnings (P/E) ratio is 22.1, significantly lower than its average P/E of 37.5 over the past decade, indicating a potentially attractive buying opportunity [10]. - The decline in earnings per share (EPS) to $3.30 year over year further suggests a discounted valuation for prospective investors [10][11]. - The turnaround for Nike will require time, but the opportunity to invest in a leading company with a strong brand is compelling [12].