Nike (NYSE: NKE) looks like a good buy primarily for technical reasons. A prolonged sell-off trimmed more than 80% off the stock price over five years, leaving it at an extreme low, looking oversold and overextended.
The stock recently capitulated after earnings results for its Q1 fiscal year 2027 (FY2027) were released. The move, accompanied by high volume, suggests the downtrend is over, and a rebound is imminent, needing only a catalyst to drive it. The risk, however, is that Nike’s sell-off is still underway and its share price could fall even further.
