We recently published a list of 11 Blue Chip Stocks to Invest in at 52-Week Lows. In this article, we are going to take a look at where NIKE, Inc. (NYSE:NKE) stands against other blue chip stocks to invest in at 52-week lows.
For the first time since 2023, the S&P 500 was seen in the market correction territory, according to US Bank (Wealth Management). The rapid fall surprised several investors, mainly considering the favorable underlying conditions US stocks carried into 2025. The broader markets are reacting primarily to the potential economic consequences of the Trump administration’s policies. Most critical are the new trade policies focused on raising tariffs for goods imported to the US. According to Rob Haworth, senior investment strategy director with U.S. Bank Asset Management, the uncertainty remains the key driver around the market’s recent decline. There are increased concerns related to the potential economic weakness, mainly because of tariff impacts.
Sector Performance in 2025
As per US Bank (Wealth Management), in 2023 and 2024, stocks were aided by consistent economic growth as technology stocks dominated the broader market performance. The revenues of technology companies were aided by significant spending on AI-related investment. As per Haworth, it is of utmost importance for other sectors to make increased earnings contributions. In the early months of 2025, there was a shift in investor sentiment. The sectors that supported the prior year’s market performance, i.e., IT, communication services, and consumer discretionary, have been dragging the market down.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Underlying Fundamentals Remain Strong
US Bank (Wealth Management) stated that the markets fluctuated through most of Q1 2025. That being said, by February 19, the S&P 500 gained 4.5%, says the firm. Furthermore, the firm added that YTD through March 17, the broader S&P 500’s total return was down 3.23%. This comes after 2 years of 25%+ S&P 500 total returns. Despite the uncertainty, for the time being, many underlying fundamentals remain positive. According to Eric Freedman, chief investment officer for U.S. Bank Asset Management, the consumers remain in a good spot, and companies are flush with cash.
As per Haworth, while US markets were impacted in Q1 2025, global stocks delivered positive returns. In the current environment, Haworth believes that a globally diversified portfolio places the investors in a position to capitalize on numerous opportunities. Notably, investors tend to respond to the perceived potential corporate earnings based on specific policies or events. Even though there have been struggles in early 2025, most of the underlying data is favorable.
Our Methodology
To list the 11 Blue Chip Stocks to Invest in at 52-Week Lows, we sifted through the holdings of SPDR S&P 500 ETF Trust and shortlisted the stocks trading close to their respective 52-week lows. Next, we mentioned hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of trainers and athletes displaying a wide range of athletic and casual footwear.
NIKE, Inc. (NYSE:NKE)
Stock Price as of March 25: $66.5
52-week Low: $65.1
Number of Hedge Fund Holders: 73
NIKE, Inc. (NYSE:NKE) is engaged in the designing, developing, marketing, and selling of athletic footwear, apparel, equipment, accessories, and services. Jefferies analyst Randal Konik reaffirmed a “Buy” rating on the company’s stock with a steady price objective of $115.00. The analyst showcased the positive signs from NIKE, Inc. (NYSE:NKE)’s latest product roll-outs and its progress in reducing the excess inventory. Furthermore, the analyst mentioned the swift restoration of the company’s relationships with wholesale partners. Overall, the price objective demonstrates a consistent view of the company’s value and growth potential despite the current market conditions.
Elsewhere, Alison Fok from DBS maintained a “Buy” rating on the company’s stock with a price objective of $115.00. The rating is backed by factors indicating growth potential and strategic improvements for NIKE, Inc. (NYSE:NKE). One of the critical reasons revolves around the launch of the NikeSKIMS line, which is a partnership with Kim Kardashian targeting the women’s fitness and activewear market. Furthermore, the company continues to take steps to revitalize its product offerings and marketing strategies. NIKE, Inc. (NYSE:NKE) remains focused on refreshing the footwear lineup and managing expenses in a bid to maximize consumer impact.
RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q4 2024 investor letter. Here is what the fund said:
“NIKE, Inc. (NYSE:NKE): NKE shares were a top detractor in the quarter following better than expected fiscal second quarter results reported in December but worse than feared third quarter guidance. The company delivered $13.4 billion of revenue (roughly $1 billion better than expectations) and $1.9 billion of EBIT (roughly $500 million ahead of street consensus) and generated better than expected earnings of $1.03 (investors were looking for $0.78). Despite better operating metrics last quarter, the company dramatically lowered expectations for the fiscal third quarter including expectations for double-digit percentage declines in revenue. NKE’s new CEO, Elliot Hill, described several key issues negatively impacting the company’s growth trajectory including 1) a multi-year move away from a focus on sports, 2) a shift away from innovative demand creating marketing, 3) too much centralization, which has led to lack of execution capabilities in local markets, and 4) too much focus on Nike Digital, which negatively impacted the brands standing in the marketplace.
Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $50 billion in revenue, $6.7 billion in FY2024 annual free cash flow, and $10 billion of excess cash. We believe that over the long term, the global secular growth trend towards active wear will continue to aid Nike’s top-line growth driving gross and operating margin improvements and long-term mid-teens or higher annual EPS growth. In the short term, we believe that the company will work through the above headwinds and that revenue and earnings growth will reaccelerate in the next 12 months.”
Overall, NKE ranks 2nd on our list of blue chip stocks to invest in at 52-week lows. While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.