Despite beating Wall St estimates, NKE stock’s price is down 10% following its Q4 earnings release. Is it time to buy with Nike (NYSE: NKE) stock nearing a two-year low?

Nike is staying on the offense this year, despite the company’s challenges. For one thing, the lockdown in China crushed sales in the region. Yet Nike’s growing digital presence and brand position leaves plenty of room for optimism.

President and CEO John Donahoe says, “it’s clear that our strategy is working.” He also adds on the Q4 earnings call, “today we are better positioned” to drive growth than before the pandemic.

Meanwhile, higher costs are shrinking margins. Can the growth company keep its pace?

Below are five reasons to consider buying Nike with NKE stocks price down in 2022.

Is NKE Stocks Price Worth Buying?

The global premium athletic wear leader is celebrating its 50th anniversary. Starting as a scrappy, underdog company, Phil Knight grew the business to become the biggest player in the industry.

Nike has fought through plenty of adversity throughout its 50-year history. Can it keep scoring through difficult times? Here are five reasons to believe so.

No. 5 Nike’s Growing DTC Business

One of the biggest reasons to believe in NKE stocks price bouncing back is due to its growing Direct-to-Consumer (DTC) business.

During the pandemic, Nike accelerated its Consumer Direct Acceleration Strategy. The transformation is unlocking even more value. For example:

• Digital share of revenue rose to 24% in Q4.
• The Nike app represents almost 50% of total digital demand.
• Nike Direct, the company’s DTC segment, grew 14% in Fiscal 2022, reaching $18.7B in revenue.

Higher DTC sales are a promising sign for Nike. For one thing, the company can connect with users and sell to them directly at scale.

Furthermore, digital sales are pushing Nike to its highest revenue quarter ever.

No. 4 Expanding to New Markets

The company’s global expansion remains strong despite lockdowns crushing Nike sales in China. In the fourth quarter, revenue in China was down 19%.

But, stronger sales in other regions help balance Nike’s total sales. For instance, Europe, the Middle East, and Africa grew revenue by 9%. Meanwhile, the Asia Pacific and Latin American markets grew by 15%.

Not only that, but these regions are also seeing heavy digital traffic. Digital penetration is rising, making it easier and less costly for Nike to sell. With this in mind, the company sees strong engagement with its app on smartphone home screens.

Even as economic conditions crumble in many parts of the world, Nike is gaining new customers from every corner of the globe.

At the same time, Nike is officially exiting the Russian market. After suspending operations in the country in March, Nike is deciding to leave. That said, only about 1% of Nike’s revenue comes from Russia and Ukraine.

No. 3 Nike’s Dominant Brand

When you see Nike’s trademark Swoosh, you automatically think of the company. Why is this?

Nike has built its empire from the ground up. For one thing, Nike’s position in sports leagues is unrivaled. For instance, the company has deals with three of the biggest North American sports leagues.

• NBA
• NFL
• MLB

The company has a long-standing relationship with the NFL. Moreover, Nike replaced Adidas to become the NBA’s uniform maker in 2015.

Live sports make up 24 of the top 25 TV programs. Not to mention, 45 of the top 50 spots go to sports. That said, Nike’s brand is everywhere.

With this in mind, Nike’s deep connection to players helps promote the brand name. During the NBA finals, two of the most popular players, Draymond Green and Jayson Tatum, repped Nike’s brands. Draymond wore converse, while Jayson wore the iconic Jordan brand.

Younger generations see the players they look up to wearing Nike’s products and want the same. And Nike is for all ages. Since the first Air Jordans, the brand has resonated with players worldwide.

As a result, Nike’s recent 50th-anniversary campaign led to its highest commerce app traffic.

Keep reading and discover why NKE stocks price may be worth considering at these levels.

NKE Stocks Price: Is It a Buy or Sell

Nike is a trendsetter. They continue upgrading their playbook to stay competitive. As a result, Nike is on top of the athletic apparel market.

Even with higher costs, China lockdowns, and supply chain issues, Nike finds a way to continue growing. Nike’s competitive advantages are propelling the company to its highest quarterly revenue.

As China eases lockdowns, we should see a return to normal sales levels in the region. On top of this, Nike’s overseas expansion continues with solid demand in Europe, Latin America, and the Middle East.

Nike’s proven playbook provides the company with rich cash flow. As a result, Nike has the funds to continue its expansion. For example, the Nike app and Nike Direct are driving higher margins while engaging consumers.

In the long run, Nike is building an empire with one of the strongest brand names in history. In Greek mythology, Nike is the goddess of victory. And the company continues winning with a superior brand.

At the same time, there is a chance of a recession. A new paper from the Fed shows over 50% chance of a recession over the next year. If this is the case, NKE stocks price will likely dip lower.

In 2008, NKE stocks price fell over 20%. Yet the next two years, Nike stock returned almost 60%. So, for long-term investors, Nike still looks like a solid buy.