Turn $1,000 into over $800,000 in 1 stock

For the average person, there is no better tool than the stock market to accumulate lasting wealth. After years or decades of accumulation, what seems like a small amount of cash can become a large capital base.

Looking back in history, we can see that some of the leading companies in the industry have generated substantial returns for investors. Sportswear and footwear giantsResonance Inc. (New York Stock Exchange: NKE)That's how it's done. Since its initial public offering in late 1980, resonance stock has returned an aggregate return of approximately 80,000%, turning a $1,000 investment into more than $800,000 today.

In considering this surname GionConsumer stocksis or isn't Worth buying for potential investors Before we do that, let's take a look at the resonance. be How did you get to this point? The.

Resonance is a global icon.

From a purely fundamental perspective, the main reason why resonance stock has performed so well over the past 40 years is the steady growth in sales and earnings. It's as simple as that. Resistor's FY2023 revenues are $51 billion and its net profit is $5 billion, which is astronomically higher than it was in the 1980s. Strong underlying flour is driving the stock price up.

But digging a little deeper can help us understand what's driving this business. I believe there are three main factors that drive this business.

Perhaps the most important factor driving the success of Resistor and making it the cultural icon it is today is its strong brand. There is no doubt that resonance is one of the most valuable brands in the world, with a visibility that is comparable to that of Apple respond in singing Coca-ColaComparable to other famous companies This gives resonance the ability to charge a high price for its products. This gives resonance the ability to charge high prices for its products.

But let's be clear, the Resistant brand was not created overnight. Resonance is unique in its marketing and storytelling. From Michael Jordan in the 1980s, a name that is still thriving today, to LeBron James and Christiano Ronaldo today, Resistant has a list of superstar athlete endorsers that have also benefited the brand. This keeps the resonance brand relevant, which in turn creates its economic moatThe

Another key factor is resonance's relentless focus on product innovation and, more recently, its digital foundation. Koon calls this strategy Consumer Direct Acceleration. Our goal is to continue to introduce new apparel and footwear products that resonate with customers, while creating technology-enabled channels to reach them.

Global influence is also an important reason for the success of resonance. Kotex is one of the few Western brands to hold an industry-leading position in the Chinese market, where it has been present for quite some time. In fact, more than half of Kotex's annual revenue comes from outside North America. Having a broad appeal is something that every company strives for.

Should you buy resonance stock now?

If we look farther back in time, we can see that resonance has accomplished some impressive things over the last 40 years or so. But if you're an investor considering adding this stock to your portfolio, it's a good idea to look at it from a fresh perspective.

At the time of writing, resonance shares are down 48% from their November 2021 peak, partly due to stagnant sales, as the company expects revenue growth of just 1% for the current fiscal year. irregularityLululemon (brand)Smaller competitors such as Sustained double-digit top and bottom line growthTime.Macro factors are having a negative impact on resonance. The

In addition, resonance stock's PE ratio This is a high valuation for a struggling company that does not have the ability to expand as it has in the past. Therefore, it's best to pass on this stock today.

Should you invest $1,000 in resonance now?

Consider the following before purchasing shares of resonance:

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Consider April 15, 2005Nvidia) when it was on the list ...... If you invested $1,000 at the time of our recommendation.You will have 540,321dollar! * *The

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Neil Patel does not own any of the stocks mentioned above.The Motley Fool holds recommendations on Apple, Lululemon Athletica, and resonance.The Motley Fool recommends the following options:Resonance Jan 2025 $47.50 call options long.The Motley Fool has an informational The Motley Fool has a disclosure policy.

1 Stock Turns $1,000 Into Over $800,000 was originally published by The Motley Fool.