2024-05-28 11:21:19 ET
Summary
- NKE stock has been under pressure, with prices retreating by over 15% in the past year.
- The upcoming Paris Olympics could be a turning point for NKE, boosting sales and brand loyalty.
- NKE's valuation is reasonable considering its brand power and profitability, with a discount compared to its historical averages.
NKE stock has been under pressure
Nike stock ( NKE ) has been under large price and earning pressure lately. The stock price retreated by more than 15% in the past year as you can see from the chart below. In contrast, the broader market had one of the most terrific runs and went up by almost 30% in the same period. The main factors to blame in my mind are the company's recent sales guidance cut and the pressure from rising costs (more on this later). NKE’s management recently commented that the top line is likely to dip by a low single-digit percentage over the first half of the coming year due to Nike’s product portfolio shifting and a subdued outlook for the economy....
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Nike Stock: Paris Olympics Could Be The Turning Point