Nike (NKE) shares have been in a major downtrend this year, but some recovery is likely after the footwear giant reports earnings on Oct. 1, according to Barchart’s options data. Heading into the quarterly print, NKE is trading just below its 20-day moving average (MA), with a decisive break above the $37 level expected to accelerate bullish momentum in the near term.
Versus its year-to-date high, Nike stock is currently down an alarming 85%.
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www.barchart.comOptions Sentiment Remains Bullish for Nike Stock
Consensus is for Nike to record $0.44 a share of earnings (EPS) for its first financial quarter, which would represent about a 10.2% decline on a year-over-year basis.
Still, the put-to-call ratio on options contracts expiring Oct. 2 sits at 0.64x currently, indicating a bullish skew. According to Barchart, the upper price on those derivative contracts is set at $39.11 as of writing, signaling potential for a 7.12% rally on the back of Q1 earnings.
NKE shares have a history of closing each of the final three months of the year in green, a seasonal trend that makes them even more attractive for the near term.
How High Can NKE Shares Fly in 2026?
Investors should also note that Nike shares are currently trading at a forward price-to-sales (P/S) multiple of about 1.15x only, which makes it significantly cheaper to own than rival On Holding (ON), which currently trades for more than 5x.
Earlier on Monday, Jefferies analyst Randal J. Konak also maintained his “Buy” rating on the NYSE-listed firm, with a $75 price target indicating potential upside of more than 100% from here.
According to him, NKE’s first-quarter release will likely “show continued progress” across North America and wholesale markets.
Finally, the footwear specialist currently pays a lucrative 4.49% dividend yield that makes it even more compelling as a long-term holding.
Wall Street Remains Bullish on Nike
It's also worth mentioning that other Wall Street firms haven’t thrown in the towel on NKE stock either.
While the consensus rating on Nike remains at “Hold” only, the mean price target of roughly $46 suggests significant upside potential from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions 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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