5 Best Consumer Discretionary Stocks To Buy

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 71

NIKE, Inc. (NYSE:NKE) manufactures and distributes athletic footwear, clothing, equipment, and accessories for men, women, and children worldwide. It is one of the best consumer discretionary stocks to invest in. NIKE, Inc. (NYSE:NKE) declared a $0.34 per share quarterly dividend, in line with previous. The dividend is payable on April 3, to shareholders of record on March 6. 

On March 17, according to Randal Konik, an analyst at Jefferies, the digital data panel of the firm indicates that there was a strong interest in sneakers during the holiday season and it has remained high so far this year. As a result, the firm expects NIKE, Inc. (NYSE:NKE) to report Q3 results that surpass expectations and are healthy. The latest data suggests that China is improving and Adidas’ recent weakness could give NIKE, Inc. (NYSE:NKE) an opportunity to gain more market share. Jefferies assigned a Buy rating and a target price of $140 on Nike shares. 

According to Insider Monkey’s fourth quarter database, 71 hedge funds were bullish on NIKE, Inc. (NYSE:NKE), compared to 70 funds in the prior quarter. Terry Smith’s Fundsmith LLP is the largest stakeholder of the company, with 6.7 million shares worth $787 million. 

ClearBridge All Cap Growth Strategy made the following comment about NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter:

“NIKE, Inc. (NYSE:NKE) has been pressured by an uneven global recovery that led to surplus inventory. We added to the position earlier in the year with the view that its inventory write-down should not derail the company’s long-term high-single-digit revenue growth or the margin expansion from its enhanced focus on the direct-to-consumer business. While near-term earnings estimates may have some risk, much of the multiple contraction is in the current value of Nike shares and sentiment has shifted, with the shares bouncing 40% higher during the quarter. Netflix is another earnings reset name that has taken decisive actions, developing an ad-supported subscription tier and cracking down on password sharing, that have helped its shares rerate strongly.”