Nike Is Down Nearly 50%, and Wall Street Analysts Keep Downgrading It. Here's Why History Says They're Missing the Bigger Picture.
Nike has taken a beating, but its latest slump could look very different.
Overview
When you look at Nike's (NYSE: NKE) stock chart right now, it is hard not to wince. It seems like it's pretty popular for social media and financial analysts alike to pile on Nike -- and rightly so. Shares are down roughly 48% over the past year and more than 40% year to date, with the price sitting near levels last seen roughly a decade ago.
Bank of America (NYSE: BAC), JPMorgan (NYSE: JPM), and others are cutting ratings and jumping in on the negative price targets. If you stop there, the story looks bleak. When I pull back and look at Nike's history, though, I see a company that has lived through worse cycles and still managed to reward patient shareholders. Here's why this time might be different.
Details
Wall Street's concerns are not made up. Nike has guided to near-term revenue declines, including a 2% to 4% drop in the current quarter and low-single-digit growth for the rest of fiscal 2026, with China sales expected to fall roughly 20% in the quarter. JPMorgan moved the stock to Neutral, then Underweight, warning that the company's "Win Now" initiatives could squeeze margins before they bear fruit, according to CNBC.
Source
Originally published at www.fool.com.