12 Best Long-term Stocks to Invest in for High Returns

6) NIKE, Inc. (NYSE:NKE)

Average Upside Potential: 33.9%

Number of Hedge Fund Holders: 75

NIKE, Inc. (NYSE:NKE) is engaged in the designing, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services. Piper Sandler analyst Anna Andreeva upped the company’s stock to “Overweight” from “Neutral,” raising the price target to $90 from $72. The analyst remains optimistic and expects a return to profitable growth in 3 to 4 quarters. Despite competitive pressures from brands such as On Running, HOKA, New Balance, and Asics, the analyst’s views about NIKE, Inc. (NYSE:NKE) stem from its history of successful comebacks.

The company’s strong brand recognition and extensive marketing budget are expected to act as competitive advantages. Furthermore, NIKE, Inc. (NYSE:NKE)’s substantial R&D capabilities, together with a deep understanding of athlete needs, place it well to roll out promising products. Moreover, the company’s innovation pipeline might help it capture a significant portion of the performance athletic market, potentially leading to increased margins and sustained revenue growth.

NIKE, Inc. (NYSE:NKE)’s efforts to improve inventory management and reduce promotional activity can result in healthier margins over the long term. Coho Partners, an investment management company released its Q2 2024 investor letter. Here is what the fund said:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”