Retail giant Nike Inc. (NYSE: NKE) and its stock have to be one of the industry's horror stories from recent years. After soaring through the pandemic, shares have since fallen in a near-continuous slide that's wiped out more than 60% of their value, while the major indices have been printing record highs. Right now, Nike is trading just above $70 and is down nearly 10% since the end of August. For many investors, that's a chart that screams caution.
But take a closer look, and there are actually some reasons to be optimistic. Nike shares are up about 40% since April's low, and as long as that low continues to hold, the stage could well be set for a major recovery rally. Add in a continuing wave of analyst upgrades over the past few months, and the contrarian case for Nike starts to look compelling.
