Added to YB: 2026-08-27
Pitch date: 2026-08-24
NKE [neutral]
NIKE, Inc.
-2.34%
current return
Author Info
Quality Stocks helps you find valuable insights to become a better investor, discover quality companies, and find investment ideas. Sign up for the newsletter.
Company Info
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America.
Market Cap
$60.5B
Pitch Price
$39.52
Price Target
47.00 (+19%)
Dividend
4.02%
EV/EBITDA
10.28
P/E
19.40
EV/Sales
1.35
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Stock of the Week: Nike Stock Is Down 76% - Is a Rebound Coming?
NKE (monitor): Down 76% from ATH after 3 years of negative growth, market-share losses to faster-growing competitors (On, Hoka) and self-inflicted strategic mistakes in distribution, product innovation and DTC; author (quality_stocks blog, Aug 26 analysis) rates it Moderately Attractive as a high-risk turnaround, not a quality compounder, with net margin below 6% vs ~11% historically, healthy balance sheet (~0.4x EBITDA leverage) and 4%+ dividend yield; at $41 the stock sits slightly above the $38 base-case DCF fair value and is approaching the first Buy Zone at $39; projected 12.5%/year TSR (organic growth +4.0%, dividends +4.1%, margin expansion +6.0%, valuation contraction -1.6%) is unusually dependent on execution since nearly half comes from margin normalization; growth expected to stay negative in 2026 before rebounding to ~4% in 2027-2028; bear $31 / base $38 / bull $47; further Buy Zones at $30 (Highly Attractive below $30) and $22; still described as a falling knife with high execution risk.
Read full article (4 min)