‘Still Not a Bargain,' Says Top Investor About Nike Stock

'Just Do It,' goes the motto that Nike (NYSE:NKE) made a household catchphrase. With its branded 'Swoosh' and world-famous spokespeople, it is no stretch to argue that Nike helped to build the premium shoe market — one that grew by leaps and bounds earlier this decade.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Indeed, the COVID years saw a major spike in Nike's footwear sales – from $23.3 billion in 2020 to over $35 billion in 2023 – though growth has been slowing of late. Last year saw footwear revenues decrease slightly, and its share price has fallen almost 40% during the past twelve months.
This week, Nike will be releasing its FQ4 2025 results, and consensus estimates are not exactly bullish. Analysts are expecting total revenues of $10.7 billion – down 15% year-over-year – while a projected EPS of $0.12 would represent an 89% decrease year-over-year.
One top investor known by the pseudonym Stone Fox Capital thinks that the growing competition will continue to present stiff resistance going forward.
'Nike remains overvalued despite a significant price decline, with the market underestimating downside risks and ongoing competitive pressures,' explains the 5-star investor, who is among the top 3% of TipRanks' stock pros.
The biggest challenge for Nike going forward will be the growing competition, asserts Stone Fox Capital, citing On Holding and HOKA as two of the biggest threats. For instance, ONON's On Running is expected to grow revenues by 40% this year.
Still, NKE is trading 'at multiples above the market,' despite forecasts of stagnating growth going forward. Stone Fox Capital spots quite a disconnect – one that the market has yet to take fully into account.
'Nike should be viewed based on the readily available data of a massive athletic footwear company that hasn't grown in years facing immense competition,' adds Stone Fox Capital.
Stone Fox Capital is urging investors to pay attention to upcoming guidance for the next quarter, which the investor predicts will be a 'horrible' forecast. Needless to say, Stone Fox Capital does not believe that 'Just Do It' is good advice for would-be investors at present.
'The stock might be down substantially from the all-time highs a few years ago, but Nike isn't actually trading like the business is under pressure,' concludes Stone Fox Capital, who rates NKE a Sell. (To watch Stone Fox Capital's track record, click here)
Wall Street is overall positive when it comes to Nike, though not overwhelmingly. With 12 Buy and 11 Hold ratings, NKE is a consensus Moderate Buy. Its 12-month average price target of $71.24 has an upside of ~19%. (See NKE stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Wire

an hour ago

• Business Wire

2025 Travelers Championship Generates More Than $4 Million for Charity

HARTFORD, Conn.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV) today announced that the 2025 Travelers Championship – a PGA TOUR Signature Event – generated more than $4 million for over 215 nonprofits, both record highs. Travelers also set a record this year as the longest-running title sponsor in the tournament's history. In the 19 years the company has been title sponsor, the Travelers Championship has generated tens of millions of dollars for charity. Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, said, 'This week truly captured what makes the Travelers Championship so special – world-class golf played before an enthusiastic crowd, all united by a shared purpose. It is a formula that led to a great week of golf and more money raised for charity than ever before. For 19 years, we have been honored to bring the PGA TOUR to Connecticut, and every year I am inspired by the passion of the players, the dedication of our fans and the incredible support from volunteers and partners who rally around our mission to give back. In addition to supporting vital charitable causes, we are proud that the tournament also generates significant economic activity for the state of Connecticut. Congratulations to our 2025 champion, Keegan Bradley, for rising to the top of one of the strongest fields in the game. We are already looking forward to making next year's tournament even more memorable.' The Travelers Championship donates 100% of its net proceeds to nonprofits. This year's primary beneficiary is The Hole in the Wall Gang Camp, an organization based in Ashford, Connecticut, that provides a traditional summer camp experience for children with serious illnesses. Many other worthy charities – spanning arts and culture, education, health care, housing, human services, mental health, food insecurity, science and technology, and youth development – also benefit from their involvement with the Travelers Championship. Andy Bessette, Executive Vice President and Chief Administrative Officer of Travelers, said, 'The Travelers Championship extends far beyond tournament week. We have created a community of fans that spans the region, and it is because of their support that we are able to make such an impact on so many charities, the true winners of the Travelers Championship. We are so grateful to the world's best PGA TOUR players for delivering another tremendous competition that we will all remember for some time.' The 2026 Travelers Championship is scheduled to take place June 22-28 at TPC River Highlands in Cromwell, Connecticut. For more information, visit About Travelers

Yahoo

an hour ago

• Yahoo

Commercial Metals (NYSE:CMC) Will Pay A Dividend Of $0.18

Commercial Metals Company (NYSE:CMC) will pay a dividend of $0.18 on the 9th of July. This payment means the dividend yield will be 1.5%, which is below the average for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Prior to this announcement, the company was paying out 113% of what it was earning, however the dividend was quite comfortably covered by free cash flows at a cash payout ratio of only 19%. Given that the dividend is a cash outflow, we think that cash is more important than accounting measures of profit when assessing the dividend, so this is a mitigating factor. Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we estimate that the payout ratio could reach 17%, which is in a comfortable range for us. View our latest analysis for Commercial Metals The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.48 in 2015 to the most recent total annual payment of $0.72. This means that it has been growing its distributions at 4.1% per annum over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, initial appearances might be deceiving. Over the past five years, it looks as though Commercial Metals' EPS has declined at around 24% a year. A sharp decline in earnings per share is not great from from a dividend perspective. Even conservative payout ratios can come under pressure if earnings fall far enough. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Commercial Metals' payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, but we still think the dividend is a bit high for comfort. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 2 warning signs for Commercial Metals that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

Business Insider

2 hours ago

• Business Insider

Stifel Nicolaus Sticks to Their Buy Rating for Alkermes (ALKS)

In a report released today, Paul Matteis from Stifel Nicolaus maintained a Buy rating on Alkermes (ALKS – Research Report), with a price target of $42.00. The company's shares closed last Friday at $29.09. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Matteis is a 3-star analyst with an average return of 1.2% and a 41.20% success rate. Matteis covers the Healthcare sector, focusing on stocks such as Alkermes, Neurocrine, and uniQure. In addition to Stifel Nicolaus, Alkermes also received a Buy from UBS's Ashwani Verma in a report issued on June 17. However, on June 10, RBC Capital maintained a Hold rating on Alkermes (NASDAQ: ALKS).