Headquartered in Beaverton, Oregon, NIKE, Inc. (NKE) is a leading sports footwear and apparel giant renowned for its strong brand portfolio that includes Nike Pro, Nike Golf, and Air Jordan. Known for its iconic "Swoosh" logo and influential marketing campaigns, NIKE offers premium, high-quality products that align with the latest customer trends. Valued at $139.13 billion by market cap, NIKE has retained its top spot in the industry for many years.
Shares of this footwear giant have significantly underperformed the broader market over the last year. NKE has declined 19.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024 alone, the stock has lost 15%, compared to SPX's 11.2% gains on a YTD basis.
Narrowing the focus, NKE’s underperformance is also apparent in comparison to the Consumer Discretionary Select Sector SPDR Fund (XLY). The exchange-traded fund has gained 18.8% over the past year, compared to NKE’s loss for the period.
On Mar. 21, NIKE reported its Q3 earnings, beating Wall Street estimates for both EPS and revenue. The stock gained marginally on the day it released earnings but also saw a downtrend since then.
For the current fiscal year, ending in May 2024, analysts expect NKE’s EPS to grow 15.5% to $3.73 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 29 analysts covering NKE stock, the consensus rating is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” nine “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 16 analysts suggesting a "Strong Buy."
On May 10, Bernstein analyst Aneesha Sherman maintained a “Buy” rating on NIKE and set a price target of $120.00, which indicates a 30.2% upside from the current levels.
The mean price target of $114.19 represents a 23.9% premium to NKE’s current price levels. The Street-high price target of $130 suggests an ambitious upside potential of 41%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
