The stock market’s returns this year have been concentrated heavily into tech stocks. That’s created an opportunity, as there’s are still several values in other segments of the market, even with stocks near all-time highs.
Astute investors will be able to find opportunities likely to trend higher in the coming months outside of tech. One place that could be ripe for big returns comes from companies with strong brands.
That’s because a strong brand tends to grow the most when the economy does well, and hold up relatively well even in down times.
It’s been a down time for Nike (NKE) over the past year. The sportswear giant is down 12%. However, the upcoming Olympic games will mean a big boost for the company’s visibility. And with Nike pushing for more global sales, it could be a big winner.
Nike’s earnings slid 5% last year, as slowing sales in mature markets like the U.S. took a hit. But rising global growth could push shares higher.
Action to take: Investors may like shares here. At current prices, Nike pays a 1.6% dividend.
For traders, shares have been trending higher since April. That trend looks likely to continue in the weeks ahead.
The September $100 calls, last trading for about $4.40, could see mid-double-digit returns and move in-the-money in the weeks to come.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.