Valued at a market cap of around $116 billion, Beaverton, Oregon-based NIKE, Inc. (NKE) is a global leader in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories. It markets and sells products through various retail channels, including NIKE-owned stores, digital platforms, independent distributors, and licensees.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and NIKE fits this criterion perfectly. The company owns a strong brand portfolio, including NIKE, Air Jordan, Converse, and more, and is widely recognized for its ‘swoosh’ logo and ‘Just Do It’ tagline.
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However, the world's most popular athleticwear brand is down 24.5% from its 52-week high of $102.49, achieved in March 2024. In addition, shares of NKE have declined 1.3% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 8.1% drop over the same time frame.
Longer term, NKE is up 2.2% on a YTD basis, outpacing NASX's 6.1% decline. Nevertheless, shares of NIKE have dipped 22.3% over the past 52 weeks, lagging behind NASX's 11.9% return over the same time frame.
NKE has been trading below its 200-day moving average since last year and has mostly stayed below its 50-day moving average since during the period despite some fluctuations.
NIKE's shares recovered marginally on Dec. 19 after reporting Q2 2025 EPS of $0.78, which, despite declining 24% year-over-year, beat the consensus estimate. Revenue also declined 8% year-over-year to $12.4 billion, but it surpassed estimates, and the company saw a rebound in digital and physical traffic in November. However, shares fell marginally the next day as concerns grew over weak Q2 sales at NIKE Direct and NIKE Digital, along with management's Q3 forecast of low double-digit revenue declines and a significant bps gross margin contraction.
In comparison, rival Deckers Outdoor Corporation (DECK) has underperformed NKE on a YTD basis, with DECK shares declining 34.4%. However, over the past 52 weeks, Deckers' stock has dropped 13.8%, which is a smaller decline compared to NIKE’s performance.
Despite NKE’s weak price action over the past year, analysts remain moderately optimistic about its prospects. Among the 33 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $84.23.
On the date of publication, Sohini Mondal 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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