NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

Nike, Inc.

In early trading on Tuesday, shares of Sherwin-Williams topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.5%. Year to date, Sherwin-Williams registers a 6.2% gain.
And the worst performing Dow component thus far on the day is Johnson & Johnson, trading down 1.0%. Johnson & Johnson is showing a gain of 30.3% looking at the year to date performance.
Two other components making moves today are Nike, trading down 0.7%, and Microsoft, trading up 2.5% on the day.
VIDEO: Dow Movers: JNJ, SHW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: JNJ, SHW

Key Points
Amazon has restructured its inbound e-commerce channels for faster and cheaper deliveries.
It's investing in its AI infrastructure to support long-term growth.
The stock trades at an attractive price today.
Shares of Amazon (NASDAQ: AMZN) have been a poor performer this year, roughly flat as of this writing while the S&P 500 is up about 14%. There are several reasons the market is wary today, including the potential effects of tariffs and a possible slowdown in Amazon Web Services (AWS).
Investors are going to get a big update when Amazon reports earnings on Oct. 30. Should you buy the stock before the report? Here are a few possible scenarios for what management's update will look like.
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E-commerce: Are tariffs having an impact?
Although investors are focused on the company's artificial intelligence (AI) business today, e-commerce is still at its core, accounting for about two-thirds of total sales, or more than $100 billion in the 2025 second quarter.
Sales growth was fairly strong in the second quarter, with both online stores and third-party sales up 11% year over year. Management made several inroads in the quarter, including expanding same-day or next-day delivery to 4,000 smaller regions and adding new brand names like Estée Lauder's Origins cosmetics line and creating a specialized Nike storefront.
As fast as e-commerce is today, Amazon continues to make meaningful strides in becoming even faster -- and cheaper, too. The company has been working on inbound channels to its regional distribution centers, and in the second quarter, it increased the amount of orders that go straight from fulfillment to delivery without extra stops by 40% year over year. Since more products are now closer to more customers, distance traveled per package declined 12% on average, and it reduced handling touches per unit by almost 15%.
CEO Andy Jassy said that the actions the company is taking are making the entire distribution system more efficient, and investors should look out for faster, more efficient delivery times in the third quarter that should also go toward improving margins. However, Jassy has said that there's still plenty of uncertainty in how tariffs will impact the business.
AWS: The future is AI
Some investors have soured on AWS, since percentage-wise, it's not growing as fast as some of its competitors, with sales up 17.5% year over year in the second quarter. But it's also a lot bigger than any other cloud services provider, so it's not necessarily a fair comparison.
The recent AWS outage underscores how much of the internet relies on its services, which demonstrates its power.
AWS is also the home of Amazon's AI business, which is growing like wildfire. As of the second quarter, it has a $123 billion annualized run rate, and the company is betting on it in a big way.
"We will continue to invest more capital in chips, data centers, and power to pursue this unusually large opportunity that we have in generative AI," Jassy said.
Focus on the long term
Management is guiding for sales to come in at between $174 billion and $179.5 billion, or a 10% to 13% increase year over year, and operating income of $15.5 billion to $20.5 billion, as compared with $17.4 billion last year. Wall Street analysts expect earnings per share of $1.56, up from $1.43 last year, and $177.7 billion in revenue.
In general, the market won't be happy unless Amazon comes in at the high ends of its guidance, but there are many factors that will impact how the market responds to the earnings release. These include specific updates about the business, and the market's reaction often reflects guidance for the upcoming quarter and full year.
There are reasons to be optimistic about the company's third-quarter results as tariffs stabilize somewhat, and management is likely to have positive news about progress in AI.
The stock is also trading at a discount to historical averages, giving it room to expand with good news. At its recent price, Amazon trades at 29 times forward one-year earnings.
Regardless of what happens on Oct. 30, this is an attractive entry point for new investors for a stock with excellent long-term prospects, and now is a good time to buy.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Amazon Stock Before Oct. 30?

Key Points
Nike might have grown revenue 1% last quarter, but management forecasts a sales dip during the current period.
Although competition will always be fierce in apparel and footwear, this company's powerful brand supports its staying power.
Even though the stock trades at a cheap valuation, it's difficult to see investors achieving monster returns from Nike.
Just because a business has a history of dominating its industry, it doesn't mean that it's always going to be a smooth ride. Nike (NYSE: NKE) provides a clear example of this. The global leader in sportswear has struggled mightily in recent years. And the leadership team is putting its best efforts forward to improve the situation.
The market isn't yet convinced. This consumer discretionary stock is trading 62% below its all-time high (as of Oct. 20), and it has fallen 11% in 2025 after a very volatile year thus far. In the midst of such a massive dip, can Nike shares be a millionaire maker?
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Nike's turnaround will take time
Nike is deep in the middle of a major turnaround. Its revenue and net income in fiscal 2025 (ended May 31) were down 10% and 44%, respectively, below the totals from the year before. This has helped drive the stock lower.
Nike's leading priorities are to rebalance its distribution strategy, focusing on wholesale accounts after the business leaned too heavily on its own digital channel. Product innovation must also be improved to drive customer excitement. Nike has altered its playbook, now putting the "athlete back at the center" in a sport-centric approach.
The good news is the company posted a 1% revenue gain in the latest fiscal quarter (Q1 2026, ended Aug. 31). However, this turnaround will take some time. Nike reported a 9% sales dip in China. And its gross margin is under pressure, from a combination of heightened discounting and promotional activity and tariff impacts in North America.
It doesn't seem like Nike's top line growing is the start of a sustainable trend. Management expects revenue to decline low single digits in the current quarter, which includes the early part of the critical holiday shopping period. Wall Street analysts forecast sales to rise 11% between fiscal 2025 and fiscal 2028, which is an encouraging outlook.
Investors can focus on the bigger picture
Every business, no matter how successful it was at one point, will likely go through periods of turmoil. Nike's troubled situation isn't that surprising when you look at the retail and apparel industries. It's extremely difficult to consistently predict what products consumers will gravitate toward, as fashion tastes change all the time. It's also not easy to figure out how aggressively to lean on online channels, especially after the pandemic impacted consumer behavior.
Nike is in an advantageous position because it operates from a position of strength. Yes, some younger rivals are finding remarkable success, but this will always be the case. Nike's powerful brand reigns supreme. And given its long history of dominating the sportswear market, supported by emotional and effective marketing campaigns and high-profile athlete endorsements, Nike should remain on top of consumers' minds.
Nike's brand strength should allow it to continue flexing its pricing power over the long term. This is the sign of a competitively advantaged business.
This is a risky bet due to high uncertainty
With shares trading 62% off their record, it's clear that the market has become extremely pessimistic. Investors want to see consistent growth when it comes to revenue and earnings. And Nike has seriously disappointed in this regard. It could be some time until things start to improve in a meaningful way.
The stock is cheap, for sure. Investors can add the company to their portfolios for a price-to-sales ratio of 2.2. This is about the cheapest valuation in the past decade, indicating very low expectations. This does add potential upside should the fundamentals strengthen.
Investors willing to take on more risk might like this stock. But it requires a lot of patience. For those looking to become millionaires, though, Nike isn't a good option. The business is mature these days, so it won't register monster growth.
Should you invest $1,000 in Nike right now?
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 62%, Can Nike Stock Be a Millionaire Maker?

Key Points
Lululemon Athletica has a growing international presence, a loyal customer base, and superior sales performance to its competitors.
RH is not just a furniture store. It's a lifestyle brand catering to high-income customers and should benefit from a rebound in the housing market.
The tech-driven bull market has overshadowed hidden gems in other sectors, most notably consumer discretionary companies. Investors who are looking for value can find compelling opportunities among top retail brands.
Here are two retail stocks with solid growth prospects that are trading well off their highs.
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1. Lululemon Athletica
Shares of Lululemon Athletica (NASDAQ: LULU) have fallen sharply this year over a weakening sales trend. Other retail brands have also experienced mixed sales results, which suggests a broader shift in consumer behavior that doesn't reflect poorly on Lululemon's brand.
For investors looking for value, Lululemon might fit the bill. The shares trade at a forward price-to-earnings multiple of 13, and this is for a brand that has been growing faster than the top dog in the industry, Nike.
Lululemon has 30 million customers in its membership program -- a solid base of customers to market new styles. Over the last six years, Lululemon has tripled its sales. It now operates 784 stores worldwide, employing 39,000 people.
Most of the sales weakness this year is isolated to the U.S. market. Internationally, Lululemon's brand is going strong, with sales in China expected to grow 20% to 25% next quarter, with its rest of world segment expected to be up about 20%. I believe the stock is undervalued and could deliver excellent returns over the next few years.
2. RH (Restoration Hardware)
With the Federal Reserve starting to enter a period of easing monetary policy by lowering interest rates, buying shares of stocks that could benefit from a rebound in the housing market could be a rewarding strategy for 2026.
RH (NYSE: RH) caters to higher-income clients. It's technically a furniture store, but RH is more than that -- it's a lifestyle brand. The evidence of that is seen in its expansion into hospitality, such as RH Guesthouses, in addition to yachts, private jets, and fine dining.
Despite disruptions from tariffs and a weak housing market, revenue grew 8.4% year over year in the second quarter. Importantly, demand grew 21% on a two-year basis, outpacing competition and helping RH gain market share.
RH has shown it can expand beyond metropolitan markets into less populated areas and still drive demand. RH England's remote gallery located in the countryside drove a 76% increase in demand in Q2 and generated $46 million of demand in its second full year of operation.
RH should report stronger growth when the housing market rebounds. The stock is trading at a fair forward P/E of 20, but the shares are down 75% from their previous peak and could be significantly underappreciating the company's future growth opportunity.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Nike. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Consumer Goods Stocks to Buy Now

NIKE Inc.’s NKE collaboration with SKIMS marks one of its most intriguing moves in recent years, a partnership that blends sport performance with pop-culture appeal. As NIKE works to revive growth and modernize its brand under the “Sport Offense” strategy, teaming up with SKIMS — a brand known for inclusivity, body positivity and sleek design — represents more than just a fashion statement. It’s a deliberate effort to bridge the gap between athletic performance and everyday style, targeting a broader and more diverse consumer base, especially women who value both function and form in activewear.
NikeSKIMS exists to serve women who are redefining what it means to be an athlete today. Within this vision, the partnership debuts its first apparel collection on Sept. 26, designed to sculpt and engineered to perform without compromise. The debut collection, featuring 58 silhouettes, merges NIKE’s performance expertise with SKIMS’ signature aesthetic. Early consumer response has been strong, signaling that this collaboration could help NIKE connect more deeply with a demographic that views activewear as a lifestyle, not just a sport utility. By infusing fashion-forward design into performance wear, NIKE is not only refreshing its women’s segment but also reclaiming cultural relevance.
The SKIMS partnership could serve as a catalyst for growth if NKE successfully scales the concept. It opens new avenues for product diversification, expands NIKE’s reach into the premium athleisure space, and enhances its appeal among younger, style-conscious consumers. If executed well, this collaboration could transcend a simple “fashion flex,” redefining NKE’s women’s business and strengthening its position as a leader in both sport and culture.
NKE’s Competition in the Global Arena
adidas AG ADDYY and lululemon athletica inc. LULU are the key companies competing with NIKE in the global market.
adidas stands as NIKE’s strongest global competitor, combining performance innovation with cultural relevance. The company is rebuilding momentum through its “Own the Game” strategy, which emphasizes direct-to-consumer growth, digital expansion and sustainability. Revitalized classics like the Samba and Gazelle have fueled a powerful lifestyle resurgence, while core performance categories such as running and football continue to benefit from strong innovation and athlete partnerships. With renewed focus on brand storytelling and premium positioning in key markets, adidas is regaining consumer trust and narrowing the gap with NIKE in the global sportswear race.
lululemon has evolved from a niche yoga brand into a global performance and lifestyle powerhouse. Its “Power of Three ×2” strategy focuses on expanding men’s and digital sales while accelerating growth in international markets, particularly China. Known for its premium quality, technical fabrics and community-driven approach, lululemon continues to capture consumers seeking both style and performance. The brand’s recent entry into footwear and running further deepens its competition with NIKE, positioning it as a formidable challenger that bridges athletic functionality with modern, fashion-forward design.
NKE’s Price Performance, Valuation & Estimates
Shares of NIKE have lost 8.7% year to date compared with the industry’s decline of 11.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 34.92X compared with the industry’s average of 29.37X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 23.6%, while that for fiscal 2027 indicates growth of 50.5%.
Image Source: Zacks Investment Research
NIKE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How the NIKE-SKIMS Partnership Could Spark NKE's Next Growth Wave?

The following are the top rated Consumer Discretionary stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
BUCKLE INC (BKE) is a mid-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Buckle, Inc. is a retailer of casual apparel, footwear, and accessories. The Company operates approximately 441 retail stores in 42 states. The Company markets a wide selection of casual apparel including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It also provides customer services, such as free hemming, free gift-packaging, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands such as Flying Monkey, Hidden, KanCan, Levis, Miss Me, Rock Revival, Wrangler, and 7 For All Mankind. Its other key brands include Affliction, American Fighter, Ariat, Billabong, Birkenstock, Free People, Goorin Bros., Hey Dude, Hooey, Howitzer, Hurley, K. Swiss, Kimes Ranch, Lost Calf, Mia, Oakley, Old Row, Pendleton, Ray-Ban, Reebok, Ridge, RVCA, SOREL, Steve Madden, Sullen, Very G, White Crow, and Z Supply.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of BUCKLE INC
NIKE INC (NKE) is a large-cap growth stock in the Footwear industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NIKE INC
GENTEX CORP (GNTX) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gentex Corporation is a supplier of digital vision, connected car, dimmable glass, fire protection technologies and consumer electronics. The Company's segments include Automotive Products and Other. The Automotive Products segment designs, develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Within this segment, it also designs, develops and manufactures various electronics that are value added features to the interior and exterior automotive rearview mirrors as well as electronics for interior visors, overhead consoles, and other locations in the vehicle. The Other segment includes Fire Protection, Dimmable Aircraft Windows, Nanofiber, Medical, and Biometrics. It manufactures photoelectric smoke detectors and alarms, visual signaling alarms, audible and visual signaling appliances, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of GENTEX CORP
LULULEMON ATHLETICA INC (LULU) is a large-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LULULEMON ATHLETICA INC
CARMAX INC (KMX) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CARMAX INC
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 10/23/2025

In the fiercely competitive world of athletic apparel, two titans dominate the playing field — NIKE, Inc. NKE and adidas AG ADDYY. Both brands command immense global recognition, yet their strategies, market positioning and business philosophies differ markedly.
NIKE holds the largest slice of the global sportswear market, fueled by its innovation-driven portfolio, powerful brand storytelling and deep North American dominance. adidas, meanwhile, stands as Europe’s sportswear leader, combining performance with lifestyle appeal and a growing focus on sustainability and fashion collaborations.
As the race for market share intensifies across categories, from running shoes to streetwear, the rivalry between NIKE and adidas reflects a clash not just of products, but of identities and growth models. This face-off explores how each brand is navigating evolving consumer trends, digital transformation and global expansion to strengthen its grip on the multi-billion-dollar athletic wear industry.
The Case for NKE
NIKE continues to command one of the largest shares of the global athletic footwear and apparel market, maintaining its leadership position within the consumer discretionary sector. Its powerful brand ecosystem, anchored by NIKE, Jordan and Converse, caters to diverse demographics across nearly 190 countries. The company’s sport-focused operating model, “Sport Offense,” has sharpened product innovation, enabling stronger connections with athletes and consumers across key categories like running, basketball and global football.
NIKE’s cultural relevance, driven by iconic storytelling and athlete endorsements, reinforces its status as both a performance and lifestyle brand, an edge that cements its industry-leading market share and pricing power.
A central pillar of NIKE’s investment appeal lies in its digital transformation and evolving channel strategy. The company continues to optimize its NIKE Direct and digital platforms, prioritizing full-price sales, data-driven engagement and profitability. Strategic wholesale partnerships with premium retailers are regaining traction, offering a balanced path to margin expansion.
NIKE’s focus on innovation and consumer insights fuels its digital ecosystem, where personalized experiences and immersive marketing initiatives drive brand loyalty. Additionally, collaborations such as the SKIMS partnership underscore NIKE’s commitment to blending performance, fashion and cultural influence, further broadening its reach among younger consumers and female audiences.
However, NIKE faces near-term headwinds, including weaker discretionary spending, tariff impacts and ongoing challenges in Greater China. Elevated inventories, shifting consumer preferences and intense competition from adidas, Puma and emerging direct-to-consumer brands also weigh on near-term growth. Nonetheless, with strong fundamentals, disciplined execution and a robust product innovation pipeline, NIKE remains well-positioned to sustain long-term leadership and deliver enduring shareholder value.
The Case for ADDYY
adidas has reaffirmed its position as Europe’s sportswear leader and one of the top global players in the consumer discretionary industry. The brand commands a strong share of the global athletic apparel and footwear market, second only to Nike, driven by a diversified portfolio spanning performance sports, lifestyle and collaborations with influential partners. The company’s dual-brand strategy, centered on performance and Originals, enables it to reach athletes, fashion-forward consumers and younger demographics simultaneously.
With an extensive global footprint and strong momentum in EMEA and China, adidas continues to strengthen its position across key growth markets, while benefiting from increasing consumer demand for athleisure and sports-inspired streetwear.
The turnaround strategy of adidas is anchored in its “Own the Game” plan, emphasizing brand desirability, direct-to-consumer acceleration and operational excellence. The company is streamlining operations, improving supply-chain efficiency and focusing on higher-margin categories while expanding digital engagement.
ADDYY’s e-commerce platforms, mobile apps and membership programs are enhancing personalization and consumer retention. adidas’s growing digital ecosystem, coupled with its marketing collaborations and sustainability-driven innovations, such as low-carbon and recyclable footwear lines, demonstrates a forward-thinking approach to long-term value creation. The brand’s partnerships with icons like Beyoncé and Bad Bunny, alongside its renewed focus on core franchises such as Samba and Gazelle, are fueling relevance among Gen Z and millennial consumers.
adidas is showing steady recovery, supported by an improving gross margin, disciplined cost management and double-digit sales growth in key markets. While still navigating challenges from inventory normalization and cautious consumer spending, the company’s strong balance sheet, pricing power and innovation-driven strategy position it for sustained profitability. With its global scale, digital momentum and commitment to brand elevation, adidas offers a compelling investment case, blending heritage strength with modern adaptability in an increasingly competitive sportswear landscape.
How Does Zacks Consensus Estimate Compare for NKE & ADDYY?
The Zacks Consensus Estimate for NIKE’s fiscal 2026 sales implies year-over-year growth of 0.4%, while EPS indicates a decline of 23.6%. The EPS estimate has moved down by a penny in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Skechers’ 2025 sales and EPS suggests year-over-year growth of 15.3% and 90.4%, respectively. The EPS estimate has moved up 2.1% in the past 30 days.
Image Source: Zacks Investment Research
This clearly illustrates that adidas has seen an upward revision in the past month, reflecting improving analyst sentiment around the company’s growth trajectory and earnings potential. This signals confidence in its ability to sustain momentum and deliver stronger performance across its diverse global footwear portfolio.
Price Performance & Valuation of NKE & ADDYY
Shares of both NIKE and adidas reflect a decline in the past three months. In the past three months, NIKE shares have declined 11%, whereas Skechers’ stock has lost 5%.
Image Source: Zacks Investment Research
NIKE is trading at a forward price-to-sales (P/S) multiple of 2.13X, below its median of 3.1X in the last five years. adidas’ forward P/S multiple sits at 1.28X, below its median of 1.56X in the last five years.
Image Source: Zacks Investment Research
NIKE seems pricey. However, its valuations reflect its focus on repositioning itself to be more competitive and drive sustainable, profitable long-term growth. If the company sustains its execution, the premium can be warranted.
adidas’ forward P/S multiple reflects a compelling valuation opportunity, trading below its long-term median while offering consistent global growth prospects. ADDYY’s lower valuation underscores its attractiveness for investors seeking a balance of resilience, expansion potential and relative affordability in the footwear sector.
Conclusion
adidas clearly emerges as the more compelling choice for investors at this juncture. While NIKE continues to dominateglobal marketshare and maintain strong brand loyalty, adidas shines through its combination of growth momentum, attractive valuation and strategic repositioning. In the past three months, ADDYY’s stock performance has outpaced its rival, reflecting both market confidence and operational resilience. Its forward-looking strategies, from digital acceleration to high-profile collaborations, position the brand to capture evolving consumer trends while sustaining profitability across geographies.
Moreover, recent estimate revisions signal heightened investor optimism around adidas’ earnings potential, reinforcing its growth narrative. Trading at a relatively discounted valuation, ADDYY offers an appealing entry point for long-term investors seeking both upside and strategic exposure to the athletic apparel sector. The brand’s blend of heritage strength, modern innovation and cost-conscious expansion underscores its ability to convert market opportunities into sustainable returns, making it the winner in this investment face-off.
NKE currently carries a Zacks Rank #3 (Hold), whereas ADDYY has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Adidas AG (ADDYY) : Free Stock Analysis Report
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NIKE vs. adidas: Which Stock Leads the Global Sportswear Race?

lululemon athletica inc. LULU, once an unstoppable growth engine, is facing an inflection point. After years of rapid expansion and tripling revenues within six years, the company is encountering both internal and external headwinds that are testing its adaptability. In the second quarter of fiscal 2025, lululemon’s earnings per share exceeded expectations, but revenues fell short, prompting a downward revision of full-year guidance. While international markets, particularly China, continue to deliver double-digit gains, the U.S. business, which accounts for the bulk of revenues, has lost momentum amid sluggish demand and shifting consumer preferences.
To reignite growth, lululemon is leaning on fresh product innovation after acknowledging that its lounge and social lines have grown “too predictable.” Under global creative director Jonathan Cheung, the brand plans to raise new styles to 35% of its assortment by spring 2026, with launches like Loungeful and Big Cozy blending performance and fashion. lululemon is also enhancing its “Science of Feel” platform and using AI-driven design to speed up product development and better respond to consumer trends.
Staying ahead in a crowded activewear market won’t be easy for lululemon. Rising competition, macroeconomic pressures and higher tariffs have strained margins, challenging the brand’s ability to balance pricing with its premium image. Still, its loyal customer base, strong global momentum and renewed focus on innovation suggest resilience. The coming year will test whether its refreshed product strategy can reignite excitement and reaffirm its leadership in premium performance apparel.
LULU’s Rivals: NIKE & Under Armour’s Brand Strength
In the competitive athletic apparel and footwear market, NIKE Inc. NKE and Under Armour UAA are both powerful players striving to capture the attention of performance-driven consumers while adapting to shifting market dynamics.
NIKE continues to reign as the powerhouse of the global athletic apparel industry, leveraging its unmatched brand equity, expansive distribution network and relentless focus on innovation. The company’s scale and marketing prowess enable it to command strong consumer loyalty while driving growth across both performance and lifestyle categories. Its focus on digital transformation and direct-to-consumer expansion has strengthened margins and deepened customer engagement, particularly through its NIKE App ecosystem and membership platform.
Under Armour, meanwhile, remains in a rebuilding phase as it works to regain market relevance and strengthen brand perception after years of inconsistent growth. The company continues to emphasize its performance heritage, aiming to reconnect with core athletes and reestablish authenticity in training and sports categories. Recent leadership changes and renewed discipline around inventory and pricing have helped stabilize operations, though challenges persist in driving consistent consumer demand and differentiating itself from larger rivals like NIKE and lululemon.
The Zacks Rundown for LULU
lululemon’s shares have plunged 52.6% year to date compared with the industry’s decline of 20.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, LULU trades at a forward price-to-earnings ratio of 13.95X, higher than the industry’s 16.81X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 earnings implies a year-over-year decline of 11.9%, whereas the consensus mark for fiscal 2026 implies growth of 1.12%. Earnings estimates for fiscal 2025 and 2026 have moved downward in the past 30 days.
Image Source: Zacks Investment Research
LULU currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New Categories, Old Challenges: Can lululemon Stay Ahead of the Curve?

The following are the top rated Consumer Discretionary stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
CARTER'S INC (CRI) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Carter's, Inc. is a marketer of young children's apparel in North America. Its segments include U.S. Retail, U.S. Wholesale, and International. The U.S. Retail segment includes sales of products in the United States through its retail stores and eCommerce websites. The U.S. Wholesale segment consists of sales in the United States of products to its wholesale partners. The International segment includes sales of products outside the United States, through its retail stores and e-commerce websites in Canada and Mexico, and sales to its international wholesale customers and licensees. It owns Carter's and OshKosh B'gosh brands. These brands are sold in department stores, national chains, and specialty retailers domestically and internationally. They are also sold through nearly 1,000 Company-operated stores in the United States, Canada, and Mexico and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. It also owns Little Planet and Skip Hop brands.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CARTER'S INC
ETHAN ALLEN INTERIORS INC (ETD) is a small-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ethan Allen Interiors Inc. is a furniture retailer, specializing in interior design destination combining technology with personal service. It offers a global luxury home fashion brand that is vertically integrated from product design through home delivery. Its segments include Wholesale and Retail. Wholesale segment is involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale and distribution of its broad range of home furnishings and accents. Retail segment sells home furnishings and accents to clients through approximately 142 Company-operated design centers. It provides complimentary interior design service to its clients and sells a range of home furnishings through a retail network of design centers located throughout the United States and internationally as well as online at ethanallen.com. Its design centers represent a mix of locations operated by independent licensees and Company-operated locations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ETHAN ALLEN INTERIORS INC
LENNAR CORP (LEN) is a large-cap value stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Lennar Corporation is a homebuilder and an originator of residential and commercial mortgage loans. The Company is also a provider of title insurance and closing services, and a developer of multifamily rental properties. The Company's segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar others. Its Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. The Company's Financial Services segment primarily provides mortgage financing, title and closing services primarily for buyers of its homes, as well as property and casualty insurance. The Companys Multifamily segment is involved in the development, construction and property management of multifamily rental properties. its Lennar Other segment includes fund investments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LENNAR CORP
NIKE INC (NKE) is a large-cap growth stock in the Footwear industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NIKE INC
DECKERS OUTDOOR CORP (DECK) is a large-cap growth stock in the Footwear industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. Its segments include UGG brand, HOKA brand and Other brands. The UGG brand segment provides premium footwear, apparel and accessories. The HOKA brand segments products include running, trail, hiking, fitness, and lifestyle footwear offerings, as well as select apparel and accessories. Its Other brands segment consists of Teva brand, AHNU brand, and Koolaburra brand. Its Teva brand includes a variety of footwear options, from classic sandals and shoes to boots. The Koolaburra brand is a casual footwear fashion line that uses plush materials. Its AHNU brands footwear products fuse high-performance technology for everyday wear. Its portfolio of brands includes UGG, HOKA, Teva, and AHNU. It sells its products through domestic and international retailers and international distributors in its wholesale channel.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DECKERS OUTDOOR CORP
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 10/21/2025

Key Points
Intel and IBM are good choices for investors looking for exposure to AI.
Nike and Walmart are solid picks in the consumer goods sector.
Reddit is a social media company benefiting from the AI boom.
October is more than halfway over, but there's still time for investors to snap up some world-class stocks. For those wanting to bet on artificial intelligence (AI), Intel (NASDAQ: INTC) and International Business Machines (NYSE: IBM) fit the bill. For consumer goods stocks that offer long-term potential, Nike (NYSE: NKE) and Walmart (NYSE: WMT) are great choices. And for something different, Reddit (NYSE: RDDT) looks interesting for investors with more appetite for risk. Here's why these five stocks are the best of the bunch in October.
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Intel
Intel's turnaround is still a work in progress, but a series of deals and developments have pushed the stock up about 90% so far this year. CEO Lip-Bu Tan, who took over in March, has been slashing costs and refocusing the company on its best opportunities. Regaining leadership in the PC and server CPU markets after years of market share losses is an imperative, as is justifying the massive expense associated with Intel's manufacturing efforts by winning external foundry customers.
Tan has proven to be quite the dealmaker. The U.S. government took a nearly 10% stake in the company in exchange for grant money that had yet to be delivered, Softbank invested $2 billion, and Nvidia took a $5 billion stake and partnered with Intel on custom PC and server chips. Pairing Intel and Nvidia technology in PCs and servers could help the company win back market share from AMD.
While Intel still needs to deliver results, market sentiment has certainly shifted in a positive direction, and recent news that Microsoft has reportedly chosen Intel to manufacture a custom AI chip has added fuel to the fire. Intel's turnaround is going to take time, but the pieces are falling into place. For patient investors, now is a great time to buy the stock.
International Business Machines
It's taken a while, but IBM has settled into a successful AI strategy that's helping to accelerate its revenue growth. The company's pairing of consulting services with an enterprise AI software platform, along with a focus on small, specialized, and cheap AI models tuned for specific tasks, has proven to be a winner.
IBM has booked more than $7.5 billion worth of generative AI-related business so far, with much of that total coming from the consulting business. In the second quarter alone, IBM booked more than $1 billion of generative AI-related consulting business. By offering solutions that combine AI implementation and other services with its AI software platform, IBM is winning over enterprises as they race to deploy AI.
IBM expects to increase revenue by at least 5% this year, adjusted for currency. That growth will come despite weakness in discretionary projects tied to the state of the economy. By leaning into AI, IBM is building a powerful growth engine that can offset sluggish spending in other areas. And because IBM's AI business is focused on delivering results for its clients in the form of reduced costs or greater efficiency, the business can continue to grow even if the AI boom cools off. For investors looking for a low-risk way to bet on AI, IBM stock is the answer.
Nike
Unforced errors have put footwear giant Nike in an uncomfortable position. The company has lost ground in sports to upstarts like On Holding, and its aggressive push toward direct-to-consumer sales has weakened the brand and hurt relationships with retailers. The stock has been a disaster, down more than 60% from its all-time high.
While attempting to stage a comeback against the backdrop of an uncertain macroeconomic environment will only make things more difficult, green shoots are starting to appear. Wholesale revenue rose by 7% in the company's latest quarter, and the Nike brand managed to grow in North America. Nike is refocusing on key sports as well as the North American market, and rebuilding wholesale relationships, and progress is clearly being made.
At the same time, Nike CEO Elliott Hill was careful to note that Nike's progress "will not be linear as dimensions of our business recover on different timelines." Investors shouldn't expect miracles in the next few quarters, but for those willing to buy and hold for at least a few years, Nike is positioning itself for a return to consistent growth. With the stock carving out new multiyear lows, now is a great time to bet on an eventual comeback.
Walmart
Inflation, tariffs, and souring consumer sentiment have created plenty of uncertainty for the retail industry. For investors looking for a relatively safe bet no matter what happens to the economy, Walmart is a great choice.
Walmart's massive scale gives it unparalleled leverage with suppliers, allowing it to keep prices as low as possible and win over consumers struggling with strained household budgets. Walmart grew revenue by nearly 5% year over year in its latest quarter while gross margin remained steady and adjusted operating margin rose. The company's bet on technology is also paying off, with global e-commerce sales rising by 25%.
Walmart is diving headfirst into the future with its partnership with OpenAI that will enable customers to purchase products from Walmart directly within ChatGPT. While the interplay between AI and commerce is still evolving, getting its products in front of hundreds of millions of ChatGPT users could drive meaningful revenue growth. Walmart isn't immune to economic conditions, but the company is better positioned than most retailers to ride out the storm.
Reddit
Where people on the internet get information, including recommendations that lead to purchases, is changing. Search engines used to be the only game in town. Then came social media sites like Meta Platforms' Facebook and Instagram, which are full of lucrative ads. AI chatbots like ChatGPT are pulling more people away from search engines, and even Alphabet has resorted to inserting AI Overviews at the top of Google search results.
What makes Reddit unique is that it benefits almost no matter what. Plenty of people go directly to Reddit for information; those who search on Google often find Reddit threads among the top results. And AI chatbots and Google's AI overviews often use Reddit threads as key sources. As the old and the new battle each other, Reddit stands above the fray.
Reddit's ad revenue is soaring as more people turn to the social media site. Ad revenue jumped by 84% year over year in the second quarter, driven by a 21% rise in daily active unique users and improved monetization. Depending on Google and AI chatbots for traffic does pose a risk, and it could create volatility in traffic and revenue. But there's no real alternative to the rich source of information Reddit provides. For investors who can handle a riskier stock, Reddit is great choice.
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Timothy Green has positions in Intel and International Business Machines. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, International Business Machines, Meta Platforms, Microsoft, Nike, Nvidia, On Holding, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	22.35 18.21
Price/Sales	2.38 0.65
P/B	8.34 1.75
P/FCF	16.54 14.46

Indicator	TTM Median
ROE	37.37 15.91
ROA	14.09 5.60
ROI	23.43 9.40
Net Worth	117.16 0.91
Quick Ratio	1.58 0.91
Current Ratio	2.36 1.45

Indicator	TTM Median
Net Profit Margin	10.60 6.40
Operating Margin	11.83 8.93
Gross Margin	44.84 38.46
Return on tangible equity	38.76 23.70

Indicator	TTM Median
EPS	0.78 0.43
EPS Forecast	0.63 0.39
Revenue	11.59B 184.50M
Gross Profit	5.26B —
EBITDA	1.39B —

Nike, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

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Revenue