#5 - Nike (NYSE:NKE)
Another company on the Goldman Sachs list of companies with exceptional pricing power is Nike (NYSE:NKE). Since bursting onto the national scene in the 1980s, the company has continued to deliver a value and experience to its customer base that sustains the company’s premium valuation.
That’s the power of having a brand that is recognizable in just three words. And the apparel company continues to expand its network of partnerships. Its latest being a multi-year deal with upcoming sportswear manufacturer, Fanatics. The deal will allow Fanatics to produce Nike-branded consumer gear for NCAA programs and increase Nike’s “speed to market.”
Investors have seen NKE stock increase in price by 80% in the last five years. And the company has a dividend that it has increased for 21 years and is supported by, among other things, free cash flow (FCF) which hit almost $6 billion in 2021. While there are better choices for companies strictly looking to capture a dividend, Nike is a solid choice for investors looking for a solid combination of both.
About NIKE
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.
More about NIKE- Current Price
- $57.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $87.38 (52.8% Upside)
