The market indexes have surged to new highs this year, but there are a handful of growth stocks with solid long-term prospects that offer excellent value to investors right now. A few of these stocks have fallen to new lows, which could be a once-in-a-decade opportunity to buy them at a discount.
To give you some ideas, let’s see why three Motley Fool contributors believe now’s a great time to scoop up shares of Nike (NYSE: NKE), Lululemon Athletica (NASDAQ: LULU), and Amazon (NASDAQ: AMZN).
A long-term winner at a deep discount
Jeremy Bowman (Nike): There’s no question that Nike is struggling right now. The sneaker king has reported anemic growth in its last several quarters as it’s losing market share to upstart rivals like On Holding, Deckers’ Hoka and Lululemon, and it’s struggled with weak consumer spending in North America and elsewhere. Its Major League Baseball jerseys have been roundly jeered, turning what seemed to be a big win for the brand into a loss, and its brand seems to be losing its luster.
As a result, Nike’s revenue was flat in its recently ended fiscal year at $51.4 billion, and the stock is trading near a five-year low.
While Nike stock should be down on those results, the good news for investors is that all of those problems are fixable. Nike has always faced competition, and it has responded time and again. It has the street cred, marketing reach, and retail relationships to turn things around. It won’t happen overnight, but there are several catalysts that could drive a turnaround.
First, Nike is taking steps to replenish its bench. It recently hired a new CIO, Cheryan Jacob, who previously worked at Microsoft and Flexport. Jacob will be tasked with modernizing the company’s tech infrastructure.
In March, Nike hired a new VP of men’s apparel as well, and it rehired a senior executive as VP of marketplace partners, showing it’s giving more attention to the wholesale channel again.
Leaning on partners like Foot Locker should help boost growth once again, and those wholesale relationships are a source of competitive advantage for the company as…
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