With a market cap of $60.1 billion, NIKE, Inc. (NKE) is a global company that designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids across multiple regions worldwide. It offers products under well-known brands like Nike, Jordan, and Converse, while also providing digital services, sports experiences, and retail platforms.
Shares of the athletic apparel maker have underperformed the broader market over the past 52 weeks. NKE stock has dipped 33.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 13.5%. In addition, shares of the company are down 36.5% on a YTD basis, compared to SPX’s 12.3% gain.
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Focusing more closely, shares of the Beaverton, Oregon-based company have lagged behind the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 2.7% return over the past 52 weeks.
www.barchart.com NIKE shares fell 3.6% following its Q1 2027 results on Oct. 1 after quarterly revenue declined about 4% to $11.21 billion, missing the analyst estimate, and sales in Greater China plunged 26% on a constant-currency basis, marking the region’s ninth consecutive quarterly decline. The company also forecast a high-single-digit revenue decline for fiscal 2027, significantly worse than analysts’ expected 2% drop, as weak demand in China, sportswear and Jordan products, increased discounting, and a shortage of compelling new releases continued to weigh on its business.
NIKE announced further job cuts beginning in 2027 and a restructuring expected to generate $2.5 billion in savings through fiscal 2031, but management warned that its China turnaround would take multiple seasons.
For the fiscal year ending in May 2027, analysts expect NKE’s EPS to decline 22.8% year-over-year to $1.22. However, the company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 40 analysts covering the stock, the consensus rating is a “Hold.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” 20 “Holds,” one “Moderate Sell,” and nine “Strong Sells.”
www.barchart.com This configuration is less bullish than three months ago, with 11 “Strong Buy” ratings on the stock.
On Nov. 5, Truist downgraded NIKE to “Sell” from “Hold”, maintaining its $29 price target.
As of writing, the stock is trading above the mean price target of $36.54. The Street-high price target of $71 suggests a 75.4% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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