Stock indices have hit new highs this year, but there are a handful of growth values with strong long-term prospects that offer excellent value to investors right now. Some of these stocks have fallen to new lows, which could be a unique opportunity to buy them at a discount.
To give you some ideas, let’s look at why three Motley Fool contributors think now is a great time to buy shares of Nike (NYSE: NE), Lululemon Athletica (NASDAQ:LULU)And Amazon (NASDAQ: AMZN).
A long term winner with a deep discount
Jeremy Bowman (Nike): There’s no doubt that Nike is in trouble right now. The sneaker king has posted anemic growth in recent quarters as it loses market share to emerging rivals like On hold, The bridges Hoka and Lululemonand it has faced weak consumption in North America and elsewhere. Its Major League Baseball jerseys have been heavily criticized, turning what seemed like a big win for the brand into a loss, and its brand appears to be losing its luster.
As a result, Nike’s revenue was flat in its recently ended fiscal year at $51.4 billion, and its stock is trading near a five-year low.
While Nike stock is likely to decline on these results, the good news for investors is that all of these problems are solvable. Nike has a history of competing and responding time and time 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 help turn things around.
First, Nike is taking steps to rebuild its workforce. It recently hired a new CIO, Cheryan Jacob, who previously worked at Microsoft and Flexport. Jacob will be responsible for modernizing the company’s technology infrastructure.
In March, Nike also hired a new vice president of men’s apparel and rehired a senior executive as vice president of marketplace partners, showing that it is once again paying more attention to the wholesale channel.
Relying on partners like Foot Locker The Summer Olympics should provide the company with a boost in growth, and those wholesale relationships are a source of competitive advantage for the company because they take time to build. Finally, the Summer Olympics could also give the company a chance to revitalize its brand in front of billions of viewers, a unique opportunity in sports.
There are no guarantees in investing, but Nike has survived enough challenges to give investors confidence that it can bounce back from the latest setback, too.
Top-notch action at a price you can’t miss
Jennifer Saibil (Lululemon Athletica): Lululemon has carved out a niche for itself in the athletic apparel space, challenging traditional leaders. It’s become synonymous with high-end athletic wear and spawned a wave of yoga-inspired brands following in its footsteps. But while growth has slowed — for now — it would be a mistake to think Lululemon is past its prime. Lululemon is thriving, and there are plenty of growth opportunities for Lululemon and its stock.
The company…
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