Technology reigns supreme in what is known as “growth” stocks, those listed that (although they trade at demanding multiples on many occasions) are capable of offering double-digit earnings growth. Facebook, Google or Amazon are classic examples of this type of action.
In contrast, the large consolidated multinationals offer much more moderate growth in the single digits, but they compensate for this “defect” with the solidity of consolidated businesses. Paradigmatic examples of this type of companies could be Nestlé or Unilever.
However, there is a company of this second type that challenges this unwritten rule of investment. This is Nike, the American sportswear manufacturer, which has posted average annualized increases of 18% in the last 40 years, according to data from Bloomberg.
It is a sweet evolution that is almost at the same level as that experienced by the technology giant Apple, which scores annualized revaluations of 20%, according to the same agency.
This year, however, the revaluations experienced by Nike far exceed that 18%. Specifically, the brand has increased its market value by 35% due to the rally experienced by the listed company after the crash in March (which is already widely exceeded).
In fact, the stock is currently at all-time highs, driven by its recent return to earnings, in the accounts it posted last September. Specifically, the manufacturer of articles for sports use announced revenues of 10.6 billion dollars in its first fiscal quarter, well above the 9.110 million that analysts had anticipated.
That day (September 23) , Nike’s stock appreciated an additional 8% in a single session , as investors considered that the brand had managed to leave the worst of the crisis behind, thanks to sales in China and the rise of the market. electronic commerce.
The company’s CEO, John Donahoe, said: “No one can match our pace” of new product releases, “which has continued despite the disruptions caused by the coronavirus.” “We are getting stronger in the places that matter most. We can thrive in this environment, ”added Donahoe, a Silicon Valley veteran who took over the reins of the company in January.
Will the dividend increase?
Also, other news that has been able to boost Nike’s stock is related to the fact that the company could increase the dividend next week, according to Bloomberg estimates.
In any case, despite the good performance of Nike on the stock market, which almost equals that of Apple, there are still technology companies that have surpassed this dazzling evolution in recent years, one of them is Amazon, which has yielded annualized returns of no less than the 39% in the last 22 years.