We recently published a list of 10 Best Safe Stocks To Buy According to Analysts. In this article, we are going to take a look at where NIKE, Inc. (NYSE:NKE) stands against other best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.
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 275% since May 2014, beating its benchmark by 150 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)
Analyst Upside as of December 6, 2024: 17%
10-Year Revenue Growth Rate: 5.67%
Number of Hedge Fund Holders: 75
NIKE, Inc. (NYSE:NKE) is an athletic footwear and apparel company, with a market share of almost 35% in the sports footwear category in the United States, ranking fourth on our list of the safe stocks to buy according to analysts. In the fiscal first quarter of 2025, the company generated $11.6 billion in revenue, of which the NIKE Brand revenues were $11.1 billion, NIKE Direct revenues were $4.7 billion, and wholesale revenues were $6.4 billion. In the same quarter, the company saw a 120 basis point increase in gross profits to reach 45.4%. NIKE, Inc. (NYSE:NKE) shares that their results met expectations and expect momentum to grow further, considering its inclination towards more innovative approaches.
NIKE, Inc. (NYSE:NKE) is on track to make a comeback and we say that because in the fiscal first quarter of 2025, the company returned $1.8 billion to its shareholders. Of this, dividends consisted of $558 million, up by 6%, and share repurchases made up $1.2 billion. In addition to that, cash and cash equivalents and short-term investments totaled $10.3 billion, up by $1.5 billion from the previous year. Cash generated by operations was offset by share repurchases, cash dividends, and capital expenditures. Overall, analysts are bullish on the stock and their median price target represents an upside of 17% from current levels.
Overall, NKE ranks 4th on our list of best safe stocks to buy according to analysts. While we acknowledge the potential of NKE to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an 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.
