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In the highly competitive sportswear industry, Nike holds a commanding lead—but its lead is narrowing. Adidas, the number two player, just reported double-digit growth across all segments and markets in the fourth quarter of 2025, reaching $29 billion (€24.8 billion) in annual sales.

I upgrade adidas to Buy as the business recovery is now clear, with broad-based growth and improved product quality. ADDYY delivered 13% FX-neutral revenue growth and 54% EBIT growth in FY25, even without Yeezy contributions. North America has shifted from a drag to a growth contributor, reducing a key risk to the turnaround thesis.

Adidas is recovering top-line growth, but inventory buildup and volatile cash flows raise questions about the quality of this rebound. ADDYY/ADDDF trades at undemanding multiples, reflecting market skepticism about management's ability to normalize inventory and sustain high-single-digit growth. Management guides for FY26 revenue growth in the high single digits and ~€2.3B operating profit, but execution and…

CT United's U15s head to IMG Academy in Florida after going undefeated and winning the MLS NEXT Pro Academy qualifying tournament CT United's U15s head to IMG Academy in Florida after going undefeated and winning the MLS NEXT Pro Academy qualifying tournament

ADDYY, ATR and CNQ have been added to the Zacks Rank #5 (Strong Sell) List on March 9th, 2026.