Nike (NKE 0.44%) has been on top of the sports world for more than a generation, and the company has built a lot of brand equity over that time. Looking ahead, the company's investments in direct-to-consumer efforts and programs the Nike Fitness Club set it up to dominate its industry for another generation.

In this segment of "The 5" recorded on Sept. 3, Fool contributors Jeremy Bowman and Brian Withers discuss Nike's advantages and why the stock should continue to outperform.

10 stocks we like better than Nike
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Nike wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of September 17, 2021


Jeremy Bowman: I'm going to go with Nike. That might not be the conventional stock you choose when you think of a no-nonsense company. You could even argue it has some exposure to the leisure and hospitality sector , which has obviously been volatile during the pandemic. But I became a Nike shareholder. I was given a small amount for my Bar Mitzvah. It's done well since then. As far as a no-brainer stock that anybody can own, I love these big brand companies like Nike, or Starbucks, or Disney. I own all three of them. Nike, they had some challenges a few years ago when it seemed like Adidas was taking some market share and then there was Under Armour. I think those have been safely dispatched. Nike I think is the first brand we think of when we think of sports and exercise, whatever. They have an unbeatable roster of athletes. They're doing a lot of great things in tech these days with their Nike fitness club and their apps, Nike and SNKRS. They've created a lot of demand for the brand, and they're outperforming their competitors. I think a company with the brand strength and the global reach and marketing power that they have, it's going to be hard to knock them off their pedestal. It's a company I think anybody can own and not have to lose sleep over.

Brian Withers: Awesome. Jeremy. If our members are interested in Nike, I don't know if you've read Shoe Dog?

Jeremy Bowman: Yeah, yeah it's a great book.

Brian Withers: Oh my gosh, this book is fantastic. It's Phil Knight was the founder of Nike and it is just the whole story of how he created the company and what he had to do to get it done. It was a totally different time when he started Nike. There weren't these big venture capital firms doling out billions of dollars left and right for companies, especially ones for, shoe companies making stuff in the Far East and importing it. Just a fantastic hustle story from Phil Knight and how really a lot of things that the brand stands for today came from the founding and its creator. I had a friend recommend it to me and I'm like, really, I don't know about this-absolutely fantastic book. It was a quick read too. I couldn't put it down. It was that interesting. You head into the beach, do Shoe Dog and shoot me on Twitter. I'd love to hear about it.