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Nike, Inc. (NKE) Stock

Nike, Inc. Stock Details, Movements and Public Alerts

Nike Inc (NKE): A Turnaround in Progress Under the CEO Who Grew Up in Nike's Hallways

Elliott Hill spent 32 years at Nike before retiring in 2020. When the board called him back as CEO in October 2024, the company he inherited was struggling with declining innovation credibility, damaged retail partnerships, and a stock that had fallen 50% from its peak. Hill's fix is a five-pillar plan: restore culture, revive product innovation, invest $5 billion in marketing, rebuild wholesale relationships with Foot Locker and Dick's Sporting Goods, and invest in retail experiences. Early results are mixed but encouraging. North America revenue grew 9% in Q2 fiscal 2026, and wholesale jumped 8% after years of decline under the DTC-first strategy. The harder problems remain: Greater China revenue fell 17%, and gross margins compressed 300 basis points to 40.6% due to U.S. tariffs and inventory markdowns. Hill has called fiscal 2026 a transition year. Investors need patience.

52-Week Range

$80.17 - $52.28

-31.77% from high · +4.63% from low

Avg Daily Volume

16,596,988

20-day average

100-day avg: 16,886,292

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

31.57

Above market average

Forward P/E

23.47

Earnings expected to grow

Price to Book

5.67

EV/EBITDA

21.76

EPS (TTM)

$1.71

Price to Sales

1.72

Beta

1.29

Similar volatility to market

Q:How is NKE valued relative to its earnings and growth?
Nike, Inc. trades at a P/E ratio of 31.57, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.47 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.
Q:What is NKE's risk profile compared to the market?
With a beta of 1.29, Nike, Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 5.67 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

5.43%

Operating Margin

8.09%

EBITDA

$3.81B

Return on Equity

17.95%

Return on Assets

5.02%

Revenue Growth (YoY)

0.60%

Earnings Growth (YoY)

-32.10%

Q:How profitable and efficient is NKE's business model?
Nike, Inc. achieves a profit margin of 5.43%, meaning it retains $5.43 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 8.09% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 17.95% and ROA at 5.02%, the company generates strong returns on invested capital.
Q:What are NKE's recent growth trends?
Nike, Inc.'s revenue grew by 0.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 32.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Footwear & Accessories industry averages for proper context.

Dividend Information

Dividend Per Share

$1.64

Dividend Yield

3.04%

Ex-Dividend Date

Mar 2, 2026

Dividend Date

Apr 1, 2026

Q:What dividend income can investors expect from NKE?
Nike, Inc. offers a dividend yield of 3.04%, paying $1.64 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Mar 2, 2026.
Q:How reliable is NKE's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Nike, Inc. pays $1.64 per share in dividends against earnings of $1.71 per share, resulting in a payout ratio of 95.91%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Apr 1, 2026.

Company Size & Market

Market Cap

$79.9B

Revenue (TTM)

$46.51B

Revenue/Share (TTM)

$31.47

Shares Outstanding

1.19B

Book Value/Share

$9.52

Asset Type

EQUITY

Q:What is NKE's market capitalization and position?
Nike, Inc. has a market capitalization of $79.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.19B shares outstanding, the company's ownership is widely distributed. As a participant in the Footwear & Accessories industry, it competes with other firms in this sector.
Q:How does NKE's price compare to its book value?
Nike, Inc.'s book value per share is $9.52, while the current stock price is $54.70, resulting in a price-to-book (P/B) ratio of 5.75. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$76.42

39.72% upside potential

Analyst Recommendations

Strong Buy

6

Buy

19

Hold

13

Sell

1

Strong Sell

1

Q:How reliable are analyst predictions for NKE?
40 analysts cover NKE with 63% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $76.42 implies 39.7% upside, but targets are often adjusted to follow price moves rather than predict them.
Q:What is the Wall Street consensus on NKE?
Current analyst recommendations:6 Strong Buy, 19 Buy, 13 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Mar 16, 2026, 02:07 AM

Technical Indicators

RSI (14-day)

25.52

Oversold

50-Day Moving Average

$62.19

-12.04% below MA-50

200-Day Moving Average

$66.37

-17.58% below MA-200

MACD Line

-2.22

MACD Signal

-1.47

MACD Histogram

-0.76

Bearish

Q:What does NKE's RSI value tell investors?
The RSI (Relative Strength Index) for NKE is currently 25.52, indicating the stock is in oversold territory (below 30). This indicates heavy selling pressure that may have pushed the price too low too fast. Oversold readings can present buying opportunities, but stocks can remain oversold in strong downtrends. Look for RSI to rise above 30 as a potential recovery signal. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
Q:How should traders interpret NKE's MACD and moving average crossovers?
MACD analysis shows the MACD line at -2.22 below the signal line at -1.47, with histogram at -0.76. This bearish crossover indicates downward pressure. The 50-day MA ($62.19) is below the 200-day MA ($66.37), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Mar 16, 2026, 12:55 AM

Active Alerts

Alert Condition
MA Breakout (Bullish)
Threshold
50 days
Created
Feb 5, 2026, 03:34 PM
Alert Condition
P/E Ratio falls below
Threshold
17.7 x
Created
Jun 30, 2025, 10:09 AM

Nike Inc (NKE) Stock Analysis 2025: Complete Investment Guide

The Insider's Turnaround

John Donahoe's tenure as Nike CEO will be studied as a cautionary tale. The former eBay and ServiceNow leader pushed aggressively into direct-to-consumer digital sales during the pandemic, cutting ties with wholesale partners and deprioritizing product innovation. When the post-pandemic world returned to physical retail, Nike found itself without the shelf space, retail relationships, or product freshness it needed.

Elliott Hill is the antithesis of that approach. He joined Nike in 1988, rose through the ranks in sales and regional leadership, and understands the company's wholesale-dependent DNA. His first moves as CEO were telling: repairing relationships with Foot Locker and Dick's Sporting Goods, rejoining Amazon, and pulling back from excessive discounting that had eroded brand premium. He described fiscal 2026 as a transition year where painful but necessary decisions lay the groundwork for recovery.

Business Model and Competitive Position

Nike operates through two primary channels: Nike Direct (nike.com, Nike app, and Nike-owned stores) and wholesale (Foot Locker, Dick's Sporting Goods, JD Sports, and third-party e-commerce). Product categories span running (Pegasus, Vomero), basketball (Jordan Brand, LeBron), lifestyle (Air Force 1, Dunk), and sportswear (ACG, Tech Fleece). The Jordan Brand alone generates over $7 billion in annual revenue.

The brand moat remains formidable despite recent execution failures. Nike is the most recognized athletic brand globally, with sponsorship deals covering the NFL, NBA, major global soccer leagues, and individual athletes. The swoosh carries cultural weight that competitors cannot replicate through marketing spend alone. The challenge is translating that brand equity back into product excitement and retail sell-through.

Financial Performance

  • •Q2 FY2026 Revenue: $12.43B (+1% YoY), beating estimates despite challenging comparisons
  • •North America: Revenue +9% with wholesale +8%, validating the wholesale partnership rebuild
  • •Greater China: Revenue down 17% to $1.42B, the most significant regional headwind
  • •Gross Margin: 40.6% (down 300bps) pressured by tariffs, inventory markdowns, and regional mix
  • •Marketing Spend: $5B+ planned for FY2026 with emphasis on brand building over promotions
  • •Jordan Brand: $7B+ annually, remaining the strongest individual brand within the portfolio

Growth Catalysts

  • •Wholesale Recovery: Restored partnerships with Foot Locker, Dick's, Amazon, and JD Sports reopening distribution channels lost under the DTC-only strategy
  • •Product Innovation: Nike Mind series, Project Amplify, and new running platforms returning credibility among performance athletes
  • •Global Events: 2026 FIFA World Cup (co-hosted by U.S.) and marketing investments creating major brand moments
  • •Running Category: Pegasus and Vomero refreshes competing against On Running and Hoka after years of ceding market share
  • •Digital Integration: Rebalancing DTC digital sales with wholesale to optimize for both reach and margin

Risks and Challenges

  • •China Decline: 17% revenue drop in Greater China reflects both macro weakness and competitive pressure from local brands like Anta and Li-Ning
  • •Tariff Headwinds: U.S. tariffs on goods imported from Vietnam and China (Nike's primary manufacturing countries) are compressing margins
  • •Competitive Erosion: On Running, Hoka (Deckers), and New Balance have captured running and lifestyle market share that Nike must reclaim
  • •Margin Recovery Timeline: Gross margin normalization may take 2-3 years as tariffs persist and inventory rebalancing continues
  • •Turnaround Execution: Multi-year turnarounds carry inherent risk; Hill must sustain cultural change across a 79,000-person global organization

Competitive Landscape

Adidas is recovering under its own turnaround with the Samba and Gazelle lifestyle hits. On Running and Hoka have taken meaningful running market share by out-innovating Nike during the Donahoe years. New Balance has become culturally relevant in lifestyle categories that were once Nike's exclusive domain. In China, Anta Sports (owner of FILA China and Arc'teryx parent) and Li-Ning have gained ground as domestic brands benefit from consumer nationalism.

Nike's scale advantage remains significant. With $50+ billion in annual revenue, a global supply chain, and athlete sponsorships that span every major sport, Nike can absorb competitive pressure that would threaten smaller brands. The question is not whether Nike survives but whether Hill can restore the product innovation cadence and cultural relevance that justified Nike's historical premium valuation.

Who Is This Stock Suitable For?

Perfect For

  • ✓Contrarian investors buying a blue-chip brand at a significant discount to historical multiples
  • ✓Long-term holders (3-5 years) willing to wait for the turnaround to materialize
  • ✓Dividend investors collecting ~2% yield from a company with decades of dividend growth
  • ✓Value-oriented buyers seeking global consumer brand exposure below historical valuation ranges

Less Suitable For

  • ✗Growth investors needing near-term revenue acceleration (FY2026 is a transition year)
  • ✗Margin-sensitive investors (gross margin recovery will take multiple years)
  • ✗Those with high China exposure concerns (17% revenue decline is not yet stabilizing)
  • ✗Momentum traders (stock may remain range-bound during the transition period)

Investment Thesis

Nike at $64 is a bet on Elliott Hill's ability to execute a multi-year turnaround at the world's most valuable athletic brand. The North America wholesale recovery (+8%) and the $5 billion marketing commitment signal that the right levers are being pulled. The 2026 World Cup provides a marketing catalyst that could accelerate brand momentum. Nike's balance sheet, dividend track record, and global infrastructure provide a foundation that most consumer brands lack.

The risks are real: China revenue is falling, tariffs are compressing margins, and competitors have captured share that will take years to reclaim. This is not a quick fix. Hill himself has set expectations for a multi-year transition. Investors who buy here are betting that the Nike brand is durable enough to withstand execution missteps, and that a CEO who spent three decades at the company knows how to unlock its potential better than a tech industry outsider did.

Conclusion

Nike offers an attractive entry point for patient investors who believe the brand's global power will ultimately prevail. The turnaround will not be linear, and quarterly results may disappoint during fiscal 2026. Position sizing should reflect the 2-3 year timeline Hill has outlined for the recovery to take full effect.
Bull Case
$95 (47% upside) - North America momentum accelerates, China stabilizes, World Cup drives brand resurgence, margins recover
Base Case
$72 (12% upside) - Gradual wholesale recovery, flat China, margins improve modestly, dividend grows steadily
Bear Case
$48 (25% downside) - China deteriorates further, tariffs intensify, competitive share loss continues, turnaround stalls

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