Stock Price & Analysis

Based on the recent data and analysis, Nike stock is showing concerning signals that suggest holding off on buying at current levels. The stock has dropped 60% from its peak and faces significant near-term challenges.

Key Challenges:

1. Sales Performance: Revenue declined 8% and net income dropped 26% in Q2 FY2025
2. Market Share Pressure: Facing strong competition from brands like Lululemon, On Holding, and Deckers' Hoka
3. Strategy Shift: New CEO Elliott Hill is implementing changes to reduce promotional sales and boost investment in sports, which could pressure near-term results

Technical Analysis:

• RSI reading of 30.68 indicates oversold conditions
• Currently trading near support levels around $70.84
• Below all major moving averages, with 20-day SMA at $73.90

Positive Factors:

1. Strong Brand: Maintains 16.4% global market share in sportswear
2. Dividend Growth: 23 consecutive years of dividend increases with current yield at 2.22%
3. New Leadership: CEO Elliott Hill brings 32 years of Nike experience and focuses on rebuilding wholesale partnerships

Recommendation: While Nike's stock appears oversold and could present a long-term opportunity, current market conditions and company-specific challenges suggest waiting for clearer signs of sales recovery and strategy execution before initiating new positions. The stock may face further downside as the company works through its transition period.

Based on the provided data and recent market analysis, here is the price prediction for Nike (NKE) stock in 2025:

Nike's stock is projected to reach $97 by May 2027, implying a potential 32% upside from current levels around $71. The near-term price target for 2025 is expected to be around $84-91, based on recent analyst consensus. This projection is supported by three key factors:

1. New CEO Elliott Hill's turnaround strategy focusing on reducing promotional activity and emphasizing product innovation is expected to improve margins, though sales recovery may take several quarters.

2. The stock is currently trading at a P/E ratio of 23.1, representing a 42% discount to its trailing five-year average, suggesting potential for valuation expansion.

3. The company maintains strong market leadership with 16.4% global market share, though facing near-term challenges including declining sales and increased competition from brands like Lululemon and On Holding.

The stock is currently showing oversold conditions with an RSI of 29.0, suggesting a potential buying opportunity at current levels. However, investors should note that full-year sales are expected to decline by 10% and earnings could drop by 45% in the current fiscal year.

The S1 support level for NKE Stock is $70.75 ,The R1 resistant level for NKE Stock is $74.1.

As of the end of day on 2025-01-24, the price of NKE Stock was $73.67.

The target price for NKE Stock according to analyst rating is 85.92, with the highest price target at 120.00 and the lowest at 69.00. Analysts have a Moderate Buy rating on NKE Stock overall.

The market cap of NKE is $108.8B.

Based on the provided data and context, here's my analysis of whether NKE is overvalued:

Technical Analysis

Valuation Assessment Nike currently trades at a forward P/E of 23.9x, which has declined significantly from 30.5x in Q3 2024. The EV/EBITDA multiple has also compressed to 17.3x from 22.7x, indicating a notable valuation reset.

Business Performance Revenue declined 8% year-over-year in the latest quarter with net income dropping 26%. Gross margins have deteriorated to 43.6% from 44.7% a year ago, suggesting pricing pressure and inventory challenges.

Market Position Nike's stock has fallen 60% from its peak, reflecting both valuation compression and deteriorating fundamentals. The new CEO Elliott Hill is implementing a strategy to reduce promotional discounts, which may pressure near-term sales but could strengthen long-term profitability.

Conclusion At current levels, NKE appears fairly valued rather than overvalued given the significant multiple compression, though near-term headwinds remain as the company works through its strategic reset.

NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.

Based on the comprehensive data analysis and market research, here's the price prediction for Nike (NKE) stock by 2030:

Nike stock is projected to reach $140-150 by 2030, driven by the company's turnaround strategy under new CEO Elliott Hill and its dominant 16.4% market share in global sportswear. The recovery path includes rebuilding wholesale partnerships and revitalizing product innovation, which should help restore Nike's historical mid-teens operating margins.

The current stock price of $71.1 represents a significant discount from its peak, with multiple analysts and investors like Bill Ackman viewing this as a long-term buying opportunity. The company's strong brand equity and strategic shift back to sports-centric focus under Hill's leadership should drive annual returns of approximately 10-12% through 2027.

NKE has a total of 83700 employees.