Analysts Debate: Is NIKE, Inc. (NKE) a Top Stock?

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The Motley Fool has been making successful stock picks for many years, but we don't always agree on what a great stock looks like. That's what makes us "motley," and it's one of our core values. We can disagree respectfully, as we often do. Investors do better when they share their knowledge.

In that spirit, we three Fools have banded together to find the market's best and worst stocks, which we'll rate on The Motley Fool's CAPS system as outperformers or underperformers. We'll be accountable for every pick based on the sum of our knowledge and the balance of our decisions. Today, we'll be discussing NIKE, Inc. (NYSE:NKE) , the shoe company.

NIKE, Inc. (NYSE:NKE) by the numbers Here's a quick snapshot of the company's most important numbers:

Statistic Result (Most Recent Available)
Revenue $24.9 billion
Net income $2.06 billion
Market cap $48.1 billion
Net cash $3.2 billion
Dividend yield 1.6%
Growth rate (MRQ) 7.4%
Business breakdown Footwear (55.4%) Apparel (30.2%) Equipment (5.6%) Other (8.8%)
Key competitors Under Armour (NYSE:UA) adidas Puma Reebok

Sources: Yahoo! Finance and company press releases. MRQ = most recent quarter.

Here's what we think of this shoe brand.

Travis' take Nike has had a tremendous history of growth in a market that seems to be more competitive every day. Since the handshake agreement between Phil Knight and Bill Bowerman in 1964, the company has gone from an idea in their heads to a dominant brand in nearly every sport imaginable. Over the past 20 years the company has managed to grow revenues almost like clockwork, and investors have been rewarded as a result.

NKE Revenue TTM Chart

NKE Revenue TTM data by YCharts.

Nike's amazing ability to stay relevant in the face of changing consumer tastes is what has set it apart from Reebok, Converse, and other brands that go from in-style to out-of-style overnight. Nike has been able to transition from Air Jordan to the "Bo Knows" campaign to the everlasting "Just Do It" that can still be seen in its ads.

Nike has also refrained from following fads that seem to take the attention of consumers momentarily. Crocs, Inc. (NASDAQ:CROX), for example, gained a foothold in the shoe market with gimmicks or quick fads, and Nike barely responded, allowing the company its moment in the sun. But do we really think Crocs is going to challenge Nike in footwear long-term?

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