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Investing.com -- Adidas AG (ETR:ADSGN) reported preliminary fourth-quarter results showing 10% currency-neutral growth, with 11% growth excluding Yeezy products, and a 90 basis points gross margin beat, sending the company’s stock higher.

Adidas shares in Germany gained 5.6% by 09:00 GMT on Friday, while the sportswear giant’s Adidas AG ADR (OTC:ADDYY) shares closed 4.25% higher a day earlier.

Adidas also said it plans to buy back up to €1 billion worth of shares in 2026, starting in February. This marks the company’s first share buyback program since 2022.

Adidas achieved an operating margin of 2.7% in the fourth quarter, representing a 170 basis points improvement year-over-year. While this margin was in line with expectations, the gross margin improved 100 basis points to 50.8%, beating forecasts by 90 basis points despite headwinds from higher tariffs and foreign exchange pressures.

The preliminary results show the Adidas brand achieved 13% currency-neutral growth for the full year, marking the second consecutive year at this level. This growth was driven by double-digit percentage increases across all markets and channels.

"The release shows that the currency-adjusted double-digit brand adidas growth rate now continues for seven consecutive quarters despite an expected slowdown in the Terrace growth rates," Kepler Cheuvreux analyst Jurgen Kolb said in a note. 

Morgan Stanley analysts called the fourth-quarter preliminary results "encouraging from both a quantitative and qualitative standpoint."

The company plans to finance the share buyback program through its strong cash flow generation, balance sheet strength, and management’s confidence in the brand’s future development. According to Bernstein, this corresponds to an up to ~10c boost to EPS.

Adidas will provide more detailed guidance during its full-year results presentation on March 4.

(Senad Karaahmetovic contributed to this report.)

Investing.com — InvestingPro members—who subscribed to our monthly updated list of AI-picked stocks for less than $9—are closing what can only be called an unmatched January for stock market gains.

On top of receiving timely calls on several names that went on to rally more than +25% during the month, such as:

• Amkor Technology Inc (NASDAQ:AMKR): +26.65% in January ALONE
• Onto Innovation Inc (NYSE:ONTO): +35.01%  in January ALONE
• Teradyne Inc (NASDAQ:TER): +30.13% in January ALONE
• Stride Inc (NYSE:LRN): +29.43% in January ALONE

(Among more than fifteen other 25%+ gainers)

Those following our premium list of picks are also enjoying a game-changing +174.2% MTD rally on a tech stock that has been considered a high-conviction pick by our AI models since November: SanDisk Corporation (NASDAQ:SNDK).

In fact, since added by our AI three months ago, InvestingPro members have already compounded an incredible +227.38% gain.

But it wasn’t just our InvestingPro members who benefited from the rally in SanDisk. Readers of this column were warned a few times this month about this potential winner; once back when the stock was up 48%, a second time when the stock was up 71%, and yet a THIRD TIME when the stock was up 112%. 

Now, with the rally in SanDisk stock, our composed list of tech picks for January is up a massive +13.30% MTD. That compares to a much smaller +1.80% gain for the S&P 500 during the same period—that’s more than 11% higher in a single month. 

Longer term, results are arguably even greater, with our actively managed selection of tech picks notching a massive +182.53% since its official launch in November 2023. That’s a +118.04% outperformance over the S&P 500 during the same period.

*These are real-world results, recorded since the official launch of our AI models.  

But if you missed these returns, here’s a piece of good news: a fresh list of AI-picked stocks is out on February first. Make sure to get to the list early, so you don’t risk missing the next SanDisk.

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Still not a member? Then here’s your chance to get the full list of picks with a special discount now.

Is There Still Time to Buy SanDisk Stock?

The storage solutions provider was called an ’AI-Fueled Memory Market Superstar’ by our AI models when added to our list of stock picks, that is BEFORE it went on to notch the crazy returns.

Here’s our AI’s full reasoning behind the pick, published by our AI in November last year:

• • SanDisk Corporation has delivered extraordinary market performance with a staggering 527% price return over 6 months and 468% year-to-date, placing it near its 52-week high.
• • The company is capitalizing on explosive AI-driven demand for NAND memory, with analysts projecting the AI NAND chip market to reach $29 billion by 2029, positioning SanDisk as a primary beneficiary of this secular growth trend.
• • Revenue growth of 10.4% and remarkable EBITDA growth of 362% demonstrate strong operational execution in a rapidly expanding market.
• • Multiple analyst upgrades reflect growing confidence, with Mizuho doubling their price target to $112, Morgan Stanley raising theirs to $96 and naming SanDisk a Top Pick, and Bernstein initiating coverage with an Outperform rating.
• • SanDisk is reportedly seeking 10% price increases while securing large hyperscaler orders, further strengthening their growth outlook.

(Similarly, the AI publishes its rationale for every stock it decides to either add to or remove from the portfolio)

Now, three months later, revenue jumped 64%, driven by strong adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale.

However, at the same time, price action has made the stock much more expensive in terms of its valuation, with our Fair Value Models indicating a potential −32.45% downside from here.

So, ride the momentum or look for the next SanDisk?

Well, check out our AI’s list of picks for February to see whether the stock was kept or removed. Unlike simpler, single-signal models, our AI evaluates a complex combination of more than 150 leading indicators to reach a decision.

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Still not a member? Then here’s your chance to get the full list of picks with a special discount now.

Here’s How the AI Stock Picker Works

At the start of each month, our AI refreshes each strategy with up to 20 stock picks. These selections are based on a blend of more than 150 well-established financial models compiled by our machine learning model on over 15 years of financial data worldwide.

Some stocks are added, others retained, and a few are removed, reflecting how the model reassesses each company’s medium-term growth potential.

To track performance, each strategy uses equal weighting across all selected stocks. While you’re not required to follow that weighting exactly, it offers a consistent benchmark to evaluate how well the model identifies opportunities across the board.

At the end of the day, stock picking is still a game of probabilities. But the key isn’t just finding winners — it’s knowing when to move on from the ones that no longer stack up.

Since launch, the model has done just that — delivering more than a few standout success stories along the way.

Disclaimer: Prices mentioned in articles are accurate at the time of publication. We regularly test different offers for our members, which may vary by region.