Nike's stock has dropped significantly, but remains the most valuable sports brand, presenting a strong turnaround investment opportunity. Q2 FY25 earnings showed declines, but cost-cutting and shareholder returns indicate potential for recovery under new CEO Elliot Hill. Nike's struggles stem from internal missteps and market competition, but its dominant market share and brand strength remain intact.
Shares of athleisure giant Nike Inc. NYSE: NKE shares have been in a steep decline for more than 2 years, shedding a staggering 60% from their all-time high in late 2021. As we head into the first couple of weeks of the new year, they're still struggling to find buyers, trading at levels last seen in 2018.
Nike plans to launch new running shoes this year. In 2024, Nike trailed competitors like Asics and Adidas in running shoe launches.
When looking back at the past 24 months, investors have so much to cheer about. The S&P 500 is up 51% during that time, thanks to a resilient economic backdrop, solid financial results, and heightened investor optimism.
Like an athlete going through a slump, Nike (NKE -1.11%) finds itself at a critical juncture. The sportswear giant's shares have tumbled nearly 30% over the prior 12 months, while the S&P 500 (^GSPC 0.16%) has delivered total returns of 27.5%, including dividends.
NIKE, Inc. NKE is still struggling to turn around its business. This Zacks Rank #5 (Strong Sell) is expected to see sales decline 9.6% this fiscal year.
Nike (NKE 1.37%) is proving that even some of the most dominant and well-known businesses can hit a rough patch. The S&P 500 is in record territory, but that's not the case for this stock.
NKE navigates troubled waters, with its shares reflecting the impacts of weak lifestyle sales, lower digital revenues and issues in the Greater China market.
Nike (NKE) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Nike (NKE 0.04%) is the leader in the global apparel and shoe market, with a 16.4% share in sportswear, according to Euromonitor. It's a household name that most investors have not only heard of but are likely customers of as well.
Bill Ackman is one of the must-watch investors of the 21st century. Ackman was an activist short seller for most of his career, but in recent years, he has transitioned to more of a long-only investor.
Nike (NKE 0.04%) reported its fiscal 2025's second-quarter results on Dec. 19, beating top- and bottom-line estimates (although expectations were very low). However, the stock fell slightly on Dec. 20 despite a 1.1% gain in the S&P 500 as investors digested Nike's guidance and the timeline of its recovery.