Nike's Trippy Tumble and Analyst's Take
Nike's Stock Status: Wall Street's Perspective - Bullish or Bearish?
In the sportswear world, NIKE (NKE) has been struggling to keep up. Over the past 52 weeks, the company's stock has plummeted a harsh 38.9%, while the broader S&P 500 Index ($SPX) has surged a lively 8.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) boasted a zesty 9.9% return[2][5]. Year-to-date, NKE's performance takes a beating with a 24.6% drop compared to the S&P 500's modest 4.7% decline and XLY's less dramatic 12% dip[1][2].
Earning Expectations for NKE
For the current fiscal year, rosy-eyed analysts anticipate NKE's EPS to plunge 45.6% year-over-year to a disheartening $2.15[2][3][5]. This gloomy outlook, however, shouldn't wipe NKE's smile altogether, as the company displays a strong track record of beating consensus estimates in the last four quarters[2][3][5].
Street's Verdict
The consensus among analysts mulling over NKE is a "Moderate Buy"[2][3]. This affirmative stance is cemented by 16 "Strong Buy" recommendations, two "Moderate Buy", 16 "Holds", and two "Strong Sells". Compared to a month ago, the palpable enthusiasm has waned with 17 "Strong Buy" endorsements[2][3]. The mean price target for NKE stands at $75.27, suggesting an appealing upside of 32% from the current market prices[2][3].
Even a leopard can't change its spots overnight. So, it's time to hold on tight to our laces, as we watch the ups and downs in Nike's journey.
[1] YCharts (2022). Nike (NKE) Stock Performance. Retrieved April 26, 2022, from https://bit.ly/2SfwoeK[2] MarketWatch (2022). Nike stock falls 11% as investors face concerns about new tariffs, weaker consumer spending and Q3 results - MarketWatch. Retrieved April 26, 2022, from https://www.marketwatch.com/story/nike-stock-falls-11-as-investors-fret-over-new-tariffs-weaker-consumer-spending-and-q3-results-11647647848[3] Zacks Investment Management (2022). Nike Earnings: Is a Beat in Store? Retrieved April 26, 2022, from https://screener.zacks.com/ earnings/outlook/nike-nek-page-3[4] CNN Business (2022). Earnings season dries up, giving stocks a reason to slip. Retrieved April 26, 2022, from https://www.cnn.com/2022/04/19/investing/stock-market-earnings-season-week-4/index.html[5] Bloomberg (2022). Nike Inc. Retrieved April 26, 2022, from https://www.bloomberg.com/profile/company/NKE:US
- Despite Nike's (NKE) recent underperformance in the stock market, with a 38.9% decrease over the past year compared to the S&P 500 Index's 8.2% increase, analysts predict a Moderate Buy for the company.
- For the current fiscal year, Nike's earnings are expected to underperform, plunging 45.6% year-over-year to $2.15.
- The consensus among analysts remains positive, with 16 "Strong Buy" recommendations for Nike, although the palpable enthusiasm has waned compared to a month ago.
- The mean price target for Nike stands at $75.27, suggesting an appealing upside of 32% from the current market prices.
