Why Nike Inc. (NKE) Stock Is Skyrocketing

We recently published a list of 10 Stocks Grow Firmer Despite Mixed Market Sentiment. In this article, we are going to take a look at where Nike Inc. (NYSE:NKE) stands against other stocks that grow firmer despite mixed market sentiment.

The stock market kicked off the first trading day of the week on a lackluster note, with major indices finishing mixed as it struggled to rebound from Friday’s bloodbath.

The Dow Jones was the sole gainer among the main indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, ten companies registered strength, albeit posting only modest gains. This article details the reasons behind their performance.

To come up with Monday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A team of trainers and athletes displaying a wide range of athletic and casual footwear.

Nike Inc. (NYSE:NKE)

Nike rallied by 4.94 percent on Tuesday to close at $80.28 apiece as investors gobbled up shares in the company following Jefferies’ recommendation to buy the stocks “aggressively.”

According to its analysts, NKE, which was trading at a nearly five-year low, is set for a comeback and could rise by more than 40 percent in value based on its recent prices.

“After a few years of challenges and self-inflicted wounds, we believe new leadership will improve product direction and re-establish balance between [direct to consumer] and wholesale [channels],” it said.

“With shares near a valuation trough, we believe now is the right time to aggressively buy shares,” it added.

Jefferies has set a new price target for NKE at $115, well above the $80 mean on Wall Street.

Overall, NKE ranks 2nd on our list of stocks that grow firmer despite mixed market sentiment. While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some 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 as promising as NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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