1 Number That Makes Nike's Turnaround Worth Watching This Month
Nike's stock has crashed more than 75% over the past five years.
Overview
Nike's (NYSE: NKE) stock isn't winning any competitions right now. Shares of the beleaguered company are down more than 30% year-to-date and trading near its 52-week low. Nike is in the middle of CEO Elliott Hill's turnaround strategy called, "Win Now." The jury is still out on whether this initiative will be a long-term success, but there is one number that investors should watch this month: $40.
This dollar amount represents the 52-week low Nike has been flirting with for the last several weeks. While timing the market and basing investment decisions solely on stock price is never a good idea, I do believe this price point will give us insight into how investors feel about "Win Now" and its progress. If Nike falls below $40, it'll be the first time in more than a decade the company has traded below that level. Overall, it's a very bearish sign, signaling investors may be losing patience as they wait for any wins to come from "Win Now."
Details
On the bright side, Nike has some positive momentum at the moment. The athletic brand received a massive tariff refund, totaling $986 million, split between two payments. The company is also rebuilding wholesale channels and investing in teams and athletes to boost loyalty and repeat customers.
Source
Originally published at www.fool.com.