We came across a bullish thesis on NIKE, Inc. (NKE) on Value Investing Subreddit Page by sneezydig. In this article, we will summarize the bulls’ thesis on NKE. NIKE, Inc. (NKE)'s share was trading at $55.76 as of April 17^th. NKE’s trailing and forward P/E were 18.52 and 26.45 respectively according to Yahoo Finance.

Nike’s stock is trading near a five-year low, weighed down by tariffs, slowing demand, and margin pressures. But beneath the surface, the company remains a global powerhouse quietly undergoing a strategic reset. Rather than reacting with desperation, Nike is taking a measured approach. Revenue fell 9% in Q3 and gross margins dipped to 41.5%, yet EPS still beat expectations—a sign of renewed cost discipline and controlled inventory management. New CEO Elliott Hill is steering the brand back to its roots, focusing on sport, performance, and narrative-driven marketing. Recent campaigns, like the McIlroy Masters spot and Super Bowl ad, underscore Nike’s re-commitment to what made it dominant in the first place. This isn’t a flashy pivot, it’s a thoughtful recalibration. The company’s dividend further reinforces its financial resilience: a 2.9% yield, 22 consecutive years of increases, a conservative 53% payout ratio, and 10% dividend growth over the past three years. Nike is literally paying investors to stay patient. While the near-term risk is continued stagnation rather than collapse, the current valuation already prices in a lot of pessimism. For long-term investors, this creates a compelling opportunity to buy a world-class brand with a durable global presence, robust profitability, and a shareholder-friendly capital return strategy—all at a significant discount. The market may be too focused on recent struggles and overlooking the quiet, deliberate turnaround already underway. In that context, Nike offers a classic case of buying a strong business while sentiment is weakest, with the dividend providing both cushion and conviction.

NIKE, Inc. (NKE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held NKE at the end of the fourth quarter which was 75 in the previous quarter. While we acknowledge the risk and 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 timeframe. 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 was originally published at Insider Monkey.