Nike (NKE) shares slipped further on April 2 as investors weighed the firm's attractive valuation against its recent warning of another 20% sales decline in China and longer-than-expected turnaround timeline.
The continued plunge in NKE has crashed its relative strength index (14-day) into the late teens, signaling the stock is extremely oversold and primed for a relief rally.
Nike stock has been a major disappointment for its shareholders this year, now down roughly 35% versus its year-to-date high.
Truist Remains Bullish on Nike Stock
While Nike’s “turnaround remains choppy” and the pressure may persist through the end of 2026, Joseph Civello, a senior analyst at Truist Securities, continues to recommend buying NKE shares on the post-earnings dip.
According to him, market expectations have been reset to a level where Nike Inc no longer has to perform miracles to impress investors; they just need to meet this new, lowered bar.
As the brand continues to flush out old, uninspiring inventory and replace it with fresh, innovative designs, it will regain its premium pricing power and consumer interest, Civello added.
In his research note, the Truist analyst dubbed Nike’s analyst day in Fall 2026 as a pivotal “clean slate” moment.
By then, he believes, the company will have moved past its current “restructuring headaches” and will be able to present a much more aggressive and clear growth strategy for 2027 and beyond.
FIFA World Cup to Drive NKE Shares Higher
For long-term investors, Nike shares are a compelling buy also because they are now unusually inexpensive to own. At 1.69x sales, the footwear giant is essentially trading at its lowest level since 2015.
Meanwhile, the NYSE-listed firm has a major tailwind on the horizon: the 2026 FIFA World Cup. Historically, Nike’s marketing machine shines during this premier global event, driving significant brand heat and product demand.
Additionally, while China remains a sore spot, North American wholesale revenues showed a 5% uptick in the recently concluded quarter, signaling the firm’s core market is now beginning to stabilize.
Not to mention that NKE currently pays a rather lucrative 3.74% dividend yield to reward patience.
Wall Street Recommends Patience on Nike Inc
Despite Nike’s muted guidance and turnaround challenges, Wall Street hasn’t thrown in the towel on it.
The consensus rating on NKE stock remains at “Moderate Buy,” with the mean price target of about $72, indicating potential upside of more than 60% from here.
