Close Menu
InfoQuest Network
  • News
  • World
    • United States
    • Canada
    • Europe
    • Asia
    • Latin America
    • Australia
    • Africa
  • Politics
  • Business
    • Personal Finance
    • Finance
    • Markets
    • Startup
    • Investing
    • Innovation
    • Billionaires
    • Crypto
  • Tech
  • Lifestyle
  • Sports
  • Travel
  • More
    • Science
    • Entertainment
    • Health & Wellness
    • Immigration
Trending

Trump defends use of ‘Shylock’ at rally in response to antisemitism accusations

July 5, 2025

LeBron James Responds to Speculation After Practicing at Cavaliers’ Facility: “Y’all Just Bored”

July 5, 2025

American Veterans Assaulted While Providing Aid in Gaza with US-Supported Organization

July 5, 2025
Facebook X (Twitter) Instagram
Smiley face Weather     Live Markets
  • Newsletter
  • Advertise
Facebook X (Twitter) Instagram YouTube
InfoQuest Network
  • News
  • World
    • United States
    • Canada
    • Europe
    • Asia
    • Latin America
    • Australia
    • Africa
  • Politics
  • Business
    • Personal Finance
    • Finance
    • Markets
    • Startup
    • Investing
    • Innovation
    • Billionaires
    • Crypto
  • Tech
  • Lifestyle
  • Sports
  • Travel
  • More
    • Science
    • Entertainment
    • Health & Wellness
    • Immigration
InfoQuest Network
  • News
  • World
  • Politics
  • Business
  • Finance
  • Entertainment
  • Health & Wellness
  • Lifestyle
  • Technology
  • Travel
  • Sports
  • Personal Finance
  • Billionaires
  • Crypto
  • Innovation
  • Investing
  • Markets
  • Startup
  • Immigration
  • Science
Home»Business»Markets»Is There Still 25% Upside Potential for Nike’s Stock?
Markets

Is There Still 25% Upside Potential for Nike’s Stock?

News RoomBy News RoomJuly 31, 20240 ViewsNo Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email Reddit Telegram WhatsApp

Nike stock (NKE) has experienced a significant decline of almost 33% this year, currently trading at around $73 per share. Despite these short-term pressures, analysts believe that the company will rebound in the long run, with increasing sales and profits. Nike has faced challenges such as macroeconomic pressures, weak sales in China, and a decline in digital sales, leading to a 60% drop from its all-time highs. However, the company’s current price-to-earnings ratio is below 20, its lowest valuation in a decade, indicating potential for stock price growth with even minor improvements.

Looking ahead to fiscal year 2025, analysts forecast Nike’s revenues to reach $49.1 billion, a 4% decrease from the previous year. Earnings per share are expected to be $3.12, leading to a revised valuation of $91 per share, significantly higher than the current market price. Despite a 50% decline in stock price from early 2021, Nike’s stock appears undervalued at the moment, presenting an opportunity for investors.

Nike has underperformed the S&P 500 for the past three years, with returns of 18% in 2021, -30% in 2022, and -7% in 2023. In comparison, the S&P 500 saw returns of 27%, -19%, and 24% for the same years, respectively. The company’s stock has struggled to keep up with the broader market, raising questions about its future performance and ability to recover in the face of uncertain macroeconomic conditions.

Kangen Water

To address its challenges, Nike has implemented turnaround plans, including cost-cutting measures and product line adjustments. The company’s profitability remains strong, with earnings per share growing by 15% year-over-year in fiscal 2024. Nike’s margins have also improved, with gross margin increasing to 44.6% in the same period. Additionally, the company’s inventory position has strengthened, allowing for innovation and new product launches.

In terms of financial stability, Nike boasts a strong balance sheet, generating over $51 billion in annual sales and over $6 billion in free cash flow. With a low debt-to-EBITDA ratio and substantial cash reserves, Nike is well-positioned to weather unexpected challenges. Share repurchases and dividend increases have also contributed to the company’s financial strength and potential for stock price growth.

Overall, Nike’s stock outlook is promising, with potential for recovery and growth in the long term. Despite recent challenges and underperformance compared to the broader market, the company’s strong fundamentals, strategic initiatives, and financial stability position it for future success. Investors may find value in considering Nike stock for their portfolios based on its current undervaluation and growth potential.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Reddit Telegram WhatsApp

Related News

Three Dividend Stocks Offering More than 7% Returns in Any Market

August 9, 2024

Reflections on 2008: Navigating a Challenging Economy with Ford

August 9, 2024

Can Baidu’s AI Innovations Drive Stock Growth After Q2 Results?

August 8, 2024

Anticipating the Outcome of Wheaton Precious Metals’ Q2 Results

August 8, 2024

What Factors are Contributing to the Decline in Nintendo Stock Prices?

August 8, 2024

Markets Aiming for Back-to-Back Winning Days

August 8, 2024
Add A Comment
Leave A Reply Cancel Reply

Top News

LeBron James Responds to Speculation After Practicing at Cavaliers’ Facility: “Y’all Just Bored”

July 5, 2025

American Veterans Assaulted While Providing Aid in Gaza with US-Supported Organization

July 5, 2025

NYPD Officer Injured by Firework to the Eye During Harlem Independence Day Celebration

July 5, 2025

Subscribe to Updates

Get the latest news and updates directly to your inbox.

Advertisement
Kangen Water
InfoQuest Network
Facebook X (Twitter) Instagram YouTube
  • Home
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 Info Quest Network. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.