Nike shares have outrun the broader indexes, beating the S&P 500's 6.73% gain and the Dow Jones Industrial Average's 2.97% increase.
Despite this year's gains, it isn't too late to make money on Nike shares, according to analysts at Morgan Stanley.
In fact, Morgan Stanley contends that Nike, which will report fiscal second-quarter results Thursday, is poised to outperform over the next three years.
Nike can generate 9% compound annual growth rate over the next three years, according to a Morgan Stanley research note to investors Tuesday.
In the research note, the firm cited three major growth drivers: Nike's increasing presence in growing worldwide markets, the company's superior innovation and marketing, and its ability to meet consumers' global shift to healthier lifestyles.
Morgan Stanley, which has an overweight rating on Nike shares, has a 12-month price target of $105, a 12.6% gain from current levels. The price target is based on 2015 earnings-per-share estates of $4.80 and a forward price-to-earnings ratio of 22.
That isn't a cheap multiple, however.
It is five points higher than the average forward P/E of companies in the S&P 500, according to The Wall Street Journal.
And Nike, whose shares are never cheap, already trades at a trailing P/E of 29, compared with the S&P 500's trailing P/E of 20, according to CNN Money.