Is this the Best Time to Invest in Nike (NKE)?

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as NIKE, Inc. (NYSE:NKE). NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The one-month return of NIKE, Inc. (NYSE:NKE) was 16.72%, and its shares gained 1.32% of their value over the last 52 weeks. On July 14, 2025, NIKE, Inc. (NYSE:NKE) stock closed at $72.25 per share with a market capitalization of $106.64 billion.

Oakmark Equity and Income Fund stated the following regarding NIKE, Inc. (NYSE:NKE) in its second quarter 2025 investor letter:

“NIKE, Inc. (NYSE:NKE) Cl B is a global leader in athletic footwear, apparel, and equipment. The company has built a leading global brand through decades of successful product innovation, marketing and partnerships with premier athletes. Since peaking in 2021, Nike’s stock price has declined to roughly a third of its previous high, largely due to challenges in its direct-to consumer initiative and concerns over tariffs. In our view, Nike’s new CEO is implementing a credible plan to improve fundamental performance by bolstering wholesaler relations and diversifying distribution while further increasing product innovation. We believe these actions will help to improve the health of the business over the medium-term, resulting in better growth and enhanced margins. These concerns provided us with the opportunity to purchase shares at a meaningful discount to our estimate of intrinsic value.”

In another article, we covered NIKE, Inc. (NYSE:NKE) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.