- Nike has surpassed its main rivals, Adidas and Asics, to position itself as a leader in the sports footwear segment.
- The company continues to be a technological innovator and has developed digital tools to spread its influence in consumer markets and increase online sales.
- Nike is a dividend-paying stock listed on the New York Stock Exchange.
Nike Inc. (NYSE: NKE), is an American multinational that designs, develops, manufactures, markets and sells footwear, apparel, equipment and accessories. Nike was founded in 1964 and is headquartered in Beaverton, Oregon.
Here’s your guide to buying shares in Nike using an online broker from Australia.
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As the largest athletic footwear and apparel brand in the world, Nike produces items in six major categories: basketball, running, soccer, training, sportswear, and Jordan. Around two thirds of Nike sales come from footwear. Besides its own brand, Nike also owns the Jordan and Converse brands. The company's outsourced manufacturing base includes more than 300 factories in over 30 countries. It sells its products worldwide.
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Step 1: Choose a broker
There are plenty of online brokers to choose from, offering different options. There are some key features to look for when choosing a broker. Some of these include:
A lot of US share trading platforms offer this feature. The cost of share trading can add up, and not having to pay commission can really save you money.
Fractional share investing
Fractional share investing means you can buy a part of a share rather than the whole thing. Because Nike shares are expensive, this may be something to consider.
Easy-to-use trading platform
Trading in shares needn’t be complicated, so keep an eye out for a trading platform that is straightforward to use.
Research and reporting
Look for a platform that has a solid research and reporting section that can give you important information about Nike, including company overview, price history, recommendations and price forecasts.
Most platforms will offer an educational section which can teach you the ins and outs of share trading.
Step 2: Fund your trading account
Next, place funds in your account. However, if you have just opened you trading account, beware it may take some time for the funds to clear before you can start trading.
Step 3: Decide how much you want to invest
The chance for fractional share investing in a real bonus here, because of the expense of buying Nike shares. Fractional investing means you can start small with much reduced risk. It also means that you can yield more profit over time by buying in when prices falter so that your average total cost is reduced.
Step 4: Decide whether to buy shares or invest in an ETF
You can purchase shares directly and own them, or you can choose to invest in an Exchange Traded Fund (ETF) that includes Nike shares, for example SPDR S&P 500 ETF Trust, iShares Core S&P 500 ETF, and Vanguard S&P 500 ETF. ETFs are similar to a mutual fund and are a more diversified option that can be great in some circumstances. They are not usually so interesting to active traders, because you have less control over where your money goes.
Step 5: Set up your order
There are different order types which can be used to customise what you buy and how much you buy it for. The main different order types are:
An order to buy/sell shares immediately. This guarantees the execution of the order, but not the price.
Let’s say Nike shares are trading at US$167. You place a buy order but by the time the order executes the price has dropped to US$165. Your purchase will go through at a lower price. The same principle applies for price rises.
For buy limit orders, execution-only happens at the nominated price or lower. For example, you may want to purchase Nike stock for no more than US$160. Submit a limit order for that amount and it will only be executed if the Nike share price falls to US$160 or below.
This type of order means your shares are sold at a specific price or higher. Let’s say you want to sell your Nike shares at US$180 a share. When the shares reach that price, your stop limit order executes.
You set a price at which you decide it is no longer worth holding your shares. Let’s say for example you nominate US$180 as the price at which you will sell your Nike shares. If the price drops to that level, your stop loss order will execute.
Step 6: Place the order
Once you have chosen a broker, funded your account based on the amount you wish to invest and decided how to invest in your Nike shares based on the order type, it's time to place the order. This will normally happen at the click of a button.
Step 7: Monitor your Nike investment
Investors can buy shares with a speculative motive to benefit from price fluctuations, or to hold as long term investments. Once you invest in a company, keep track of both its share price movements and performance.
Track Nike’s performance
Watch out for how Nike seeks to retain its market leadership in athletic and fashion shoes, and its financial fundamentals. The company is committed to technological innovation in order to increase its online sales and attract new and younger consumers.
More than two thirds of Nike’s revenue come from shoes. Nike has invested in developing digital tools and apps to boost its online sales using augmented reality and the Nike Fit app for amateur athletes to plan their routines.
Nike's top competitors include Adidas (ETR: ADS) and ASICS (OTC: ASCCF), which it surpassed in 2018 to become the sales leader. Other competitors include PUMA (ETR: PUM), Under Armour (NYSE: UA), Lululemon (NASDAQ: LULU), Reebok (ETR: ADS), and Skechers (NYSE: SKX).
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