Core Viewpoint - Nike is currently viewed as a long-term buy due to its attractive valuation and potential for medium-term returns, despite current negative sentiment [1] Innovation Strengths, Brand/Market Leadership, & Trend Adaptation - Nike is launching the Air Max Dn product range featuring Dynamic Air technology, enhancing shoe performance through rapid innovation cycles [2] - The company generates 58% of its revenue from non-US markets in FY24, supported by collaborations with high-profile athletes and micro-influencers [2] - Nike has a strong track record of capitalizing on trends, such as athleisure, and has invested heavily in digital transformation, with digital sales growing at a compound annual growth rate of 26% since 2019 [2] - Plans to establish a technology center in Atlanta focusing on AI and logistics, and initiatives in the metaverse indicate a forward-looking approach to innovation [2] Valuation & Financial Analysis - Nike's forward PE GAAP ratio is 26.5, above the sector average of 17, but it is currently at a 24.75% discount from its 5-year average [3] - The company has delivered a 5-year average diluted EPS growth of 24.5%, significantly higher than the sector median of 4.83% [3] - Current revenue growth is around 0.3%, with a forward EPS GAAP growth of 4.27%, indicating potential for improvement in the future [3] - Wall Street consensus predicts a -20.28% YoY decline in normalized EPS for the fiscal period ending May 2025, followed by 15% YoY growth for the fiscal period ending May 2026 [3][4] Market Cap Projections - If Nike achieves a PS ratio of 3, it could reach a market cap of $162 billion by May 2027, indicating a 30% growth from the current market cap of $124.87 billion [5] Competition, Innovation Concerns, & Shifting Consumer Preferences - Nike faces competition from brands like Lululemon, which is expanding into footwear, and other emerging brands gaining traction [6] - Criticism exists regarding Nike's reliance on best-selling franchises, which may hinder innovation and allow competitors to capture market share [7] - High inflation in the US is shifting consumer preferences towards casual and affordable apparel, prompting Nike to adjust its lineup [7] Conclusion - Nike is considered a value opportunity with a potential market cap of around $160 billion in approximately 18 months, supported by its strong brand and management adaptability [8]

On reported another fabulous quarter, while Nike remains in the dumps.There isn't another running shoe or athletic wear brand that could come close to challenging Nike (NKE 0.18%) right now. Its lead is so large that its trailing 12-month sales are more than pretty much all of its competitors' combined.But it wouldn't be the first giant that became a dinosaur. I wouldn't worry about it yet, but I would take a look at some younger companies that are making their mark and standing out even against titans like ...

NEW YORK, Aug. 19, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of NIKE, Inc. (NYSE: NKE).Shareholders who purchased shares of NKE during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/nike-loss-submission-form/?id=96007&from=4CLASS PERIOD: March 19, 2021 to June 27, 2024ALLEGATIONS ...

Photo by Michael M. Santiago/Getty ImagesGetty ImagesThe stock market correction appears to be over. The decline tells us that less technology stocks will participate. These shares will be replaced by stocks that were not part of the rising tide in the first half. NIKE and Starbux are both likely to outperform through yearend.Nike appears to be ending a five-year decline. The technical picture in graph 1 shows the protracted decline. Monthly, price has retraced 61.8% of its 2021-2024 decline. The stock is, ...

Will Nike be the next company to dump its CEO?Nike (NKE 0.89%) stock finished up 5% on Tuesday even as there was no company-specific news out on the stock.Instead, the main driver of the gains came from a surprising source. Starbucks stock soared 25% after it named a new CEO to drive a turnaround in the company after the business had faltered under CEO Laxman Narasimhan.A 25% jump on a new CEO might be unprecedented, especially for a company the size of Starbucks, and it seems to have Nike investors thinkin ...

Nike (NKE) ended the recent trading session at $83.23, demonstrating a +0.88% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.2% for the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.21%.Coming into today, shares of the athletic apparel maker had gained 13.98% in the past month. In that same time, the Consumer Discretionary sector lost 1.29%, while the S&P 500 lost 1.49%.Analysts and investors alike will be keeping a ...

PARIS, FRANCE - JULY 18: (L-R Back) U.S. Olympians Lucas Lacamp, Kevon Williams, Matai Leuta, ... [+] Stephen Tomasin, Adam Channel (Front Row) Pita Vi and Kisi Unufe try on clothes during the Team USA Welcome Experience ahead of Paris 2024 Summer Olympics at Nike on July 18, 2024 in Paris, France. (Photo by Joe Scarnici/Getty Images for USOPC)Getty Images for USOPCAmidst all the controversy sparked by the Paris Olympics, Nike must be hoping that its colossal misstep in its “Winning Isn’t For Everyone” ad c ...

Shares of the sportswear giant got a boost from Bill Ackman.Shares of Nike (NKE 4.14%) were moving higher today after investors responded favorably to news that Bill Ackman's Pershing Square Capital Management Fund had taken a stake in the company, which was reported in Pershing Square's 13-F filing last night. As a result, shares of Nike were up 3.8% as of 11:43 a.m. ET on Thursday.Nike's starting to look like a value stockAckman is one of the most respected and attention-grabbing fund managers on Wall Str ...

Robert Way This hasn't happened in a while Data by YCharts When I started writing this article for NIKE, Inc. (NYSE:NKE) a few weeks ago, the reflexive pattern was even better than it is now with 10-year price growth finally dipping below earnings growth. These are normally very bullish signs, especially when it comes to established brand names. While the stock has rebounded a bit, we still observe a convergence of the growth lines that really hasn't occurred since 2017. Although Nike stock is going through ...

KEY TAKEAWAYSBillionaire investor Bill Ackman built new stakes in Nike during the second quarter, according to a regulatory filing, helping send shares of the sneaker giant up around 4% in premarket trading.The SEC filing showed Ackman's Pershing Square Capital Management had built a stake of more than 3 million shares.Nike has been struggling with falling sales amid a slowing Chinese economy and rising competition from upstarts like Hoka. Billionaire investor Bill Ackman built new stakes in Nike (NKE) duri ...