The Best and Worst Dow Stocks for the Next 12 Months

7. NIKE Inc. (NYSE:NKE)

Upside Potential: 28.9%

Market Cap: $85 billion

Number of Hedge Fund Holders: 73

NIKE Inc. (NYSE:NKE) is the world’s most extensive athletic footwear and apparel seller. Apart from athletic footwear and clothing, it sells equipment, accessories, and services worldwide through its owned retail stores and digital platforms, distributors, and licensees.

NIKE Inc. (NYSE:NKE) has underperformed this year, with its share price down around 24% YTD. However, in a note published around April 25, Bank of America Securities analyst Lorraine Hutchinson highlights this underperformance as an opportunity because she believes that the stock now fairly factors in all the challenges, such as tariffs and weakening demand in China. Moreover, despite the decline in China sales, she notes that the recent decline in share prices appears to be overdone.

The analyst also believes that the company’s strong supply chain would ensure it can offset the tariff pressures by selectively increasing prices across global markets. Lorraine also noted that the company is burning its existing inventory, which should help it focus on further product innovation and increase sales growth. As a result, the analyst reiterated a Buy rating on NIKE Inc. (NYSE:NKE), although with a decreased price target of $80, down from $90 earlier.

On April 23, DBS analyst Alison Fok upgraded the stock to a Buy with a price target of $115, substantially above the consensus of $74.