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With a market cap of $117.8 billion, NIKE, Inc. (NKE) is a global leader in designing, developing, marketing, and selling athletic footwear, apparel, equipment, and accessories for men, women, and children. With its strong portfolio of brands like Nike, Air Jordan, and Converse, it offers premium products that align with the latest consumer trends.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and NIKE fits this criterion perfectly, exceeding the mark. The company is known for its iconic 'swoosh' logo and 'Just Do It' slogan, which are recognized worldwide. NIKE's presence spans key markets such as the U.S., U.K., Japan, and China, bolstered by partnerships with top athletes and teams.
The company pulled back 34.5% from its 52-week high of $123.39. Shares of NKE are up marginally over the past three months, underperforming the broader S&P 500 Index's ($SPX) 12.7% rise in the same period.
In the long term, on a YTD basis, shares of NIKE have declined 25.6%, lagging behind SPX's 27.8% increase. Also, NIKE has dipped 30.4% over the past 52 weeks, compared to SPX's 34% return.
NKE has been in a bearish trend, trading below its 50-day and 200-day moving averages since last year despite a few fluctuations.
Nike's stock tumbled 6.7% on Oct. 2 after reporting fiscal Q1 2025 results showing a 10% revenue decline to $11.6 billion and a 28% year-over-year drop in net income to $1.1 billion, despite beating profit expectations. The company withdrew its full-year guidance and postponed its November investor day due to the upcoming CEO transition, leaving investors uncertain about future strategies. Additionally, management admitted revenue is trending worse than the previously expected mid-single-digit drop for fiscal 2025, while gross margins are likely to continue declining.
The stock’s rival, Deckers Outdoor Corporation (DECK), has seen a 74.8% rise over the past 52 weeks and a 79.9% gain on a YTD basis, outpacing NKE's performances in both periods.
Despite NKE’s underperformance relative to SPX over the past year, analysts are moderately optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 32 analysts covering it, and it is currently trading below the mean price target of $87.76.
