Retail stocks such as Nike (NYSE:NKE) and Allbirds (BIRD) are well poised to derive outsized gains to long-term investors. Nike’s consistent performance and the ongoing increase in digital sales positions the company to beat the broader indexes. Alternatively, Allbirds’ narrowing losses and strong revenue projections make it a growth stock that should be part of your watchlist today. But which stock is currently the better buy?.The global footwear market size was $271.82 billion in 2020 and it is expected to reach $328.02 billion by 2027. That’s a predicted compound annual growth rate (CAGR) of 2.4% during 2021-2027.
Athletic footwear make up a large part of this market. In 2020, the global athletic footwear market was valued at $99.61 billion and it is expected to grow at a CAGR of 4.56% from 2021-2026.
With that in mind, today I’ll analyze Nike (NKE) and Allbirds (BIRD) to determine which stock is currently the better buy. While Nike is an established brand valued at a market cap of $270 billion, Allbirds is a much smaller player that recently had an IPO and is valued at just $2.4 billion.