11 Best Wide Moat Stocks to Buy Right Now

7. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 81

NIKE, Inc. (NYSE:NKE) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide moat stems from the intangible brand asset. On October 6, Lorraine Hutchinson, an analyst from Bank of America Securities, maintained a “Buy” rating on the company’s stock, while the associated price target remained same at $84.00. The analyst’s rating is backed by NIKE, Inc. (NYSE:NKE)’s improved sales performance, mainly due to the healthy unit volumes throughout various regions. As per the analyst, the rise in units sold, primarily in apparel and footwear, exhibits a positive trend.

Furthermore, this growth was helped by the new distribution points as well as value channel sales. While NIKE, Inc. (NYSE:NKE)’s gross margin witnessed contraction in Q1 2026, there is an anticipation of sequential improvement in H2 of the year. The expected improvement is backed by the lapping of previous wholesale support actions, which can help offset challenges due to the tariffs and market fluctuations in China and Converse. Notably, in Q1 2026, NIKE, Inc. (NYSE:NKE)’s gross margin fell 320 basis points to 42.2%.

Pershing Square Holdings, an investment holding company, released its H1 2025 investor letter. Here is what the fund said:

“NIKE, Inc. (NYSE:NKE) is in the early stages of a turnaround under new CEO Elliott Hill. In the ten months since rejoining the company, Hill has moved with urgency, replacing 12 out of his 15 direct reports and resetting the culture and organizational structure with a renewed focus on sport. Hill’s “Win Now” strategy targets a return to profitable growth by accelerating product innovation, creating distinctive marketing, and rebuilding wholesale distribution, while right-sizing inventory levels across certain product lines and sales channels following several years of overreliance on direct-to-consumer and lifestyle footwear. While a full turnaround will take time, we are beginning to see encouraging signs of progress.

In the most recent quarter, NIKE delivered results and guidance ahead of expectations. Revenue declined by 11% on a currency-neutral basis as aggressive inventory liquidation and elevated wholesale discounts weighed on results. However, momentum is building in sports performance, with running revenue growing by high-single-digits powered by new franchises such as the Vomero 18. Other near-term priorities include training with the Metcon shoe and 24/7 apparel collection, soccer with the upcoming 2026 World Cup in North America, and basketball with a Caitlin Clark signature shoe expected to be launched in spring 2026. Wholesale partners are excited about the newness, with holiday 2025 order books up year-over-year, supporting better-than-expected guidance for the current quarter of a mid-single-digit revenue decline. Management believes clearing excess inventory by the end of 2025 will allow NIKE’s order book and revenue growth to better align, enabling a return to growth in 2026.…”(Click here to read the full text)