Nike Stock Is Down 62%. Is It a Buy?
Nike (NYSE: NKE) stock plummeted to new lows following its latest earnings update. This iconic sportswear brand has suffered declining sales over the last year, which has sent the stock down 62% from its previous peak.The steady fall in the share price over the last three years might have shareholders wondering if Nike will ever return to its former glory. While sales are expected to remain soft in the near term, the stock's valuation may undervalue Nike's long-term growth potential.It seemed the stock was in the process of bottoming out when Elliott Hill, who worked at Nike for over 30 years, was hired as CEO in October. However, investors can't expect the stock to rebound in a year when analysts expect Nike's sales to be down 10% for its May-ending fiscal year.Continue reading
Nike (NYSE: NKE) stock plummeted to new lows following its latest earnings update. This iconic sportswear brand has suffered declining sales over the last year, which has sent the stock down 62% from its previous peak.
The steady fall in the share price over the last three years might have shareholders wondering if Nike will ever return to its former glory. While sales are expected to remain soft in the near term, the stock's valuation may undervalue Nike's long-term growth potential.
It seemed the stock was in the process of bottoming out when Elliott Hill, who worked at Nike for over 30 years, was hired as CEO in October. However, investors can't expect the stock to rebound in a year when analysts expect Nike's sales to be down 10% for its May-ending fiscal year.
