Weather forecast

Nike Inc (NKE)

Rainy

Sell

Score 37/100 · Confidence 65%

Clouds are gathering — better to let this weather pass.

Weighed fromlive price action

Why this call

Iconic Brand Faces Growth Headwinds

Negative revenue growth of -2.7% signals fundamental business challenges.

Poor sentiment following the latest earnings report continues to weigh on the stock.

The stock remains in a clear downtrend over the past month.

Under the hood

What the engine weighed

Six factors, scored 0–100 from live market and financial data — the same read Wall Street does, minus the jargon.

0Overall score
Valuation
0

The stock looks expensive given its current lack of growth.

Growth
0

Sales are currently shrinking and the near-term outlook is weak.

Profitability
0

Margins are decent but not a major strength at the moment.

Momentum
0

The stock is in a strong downtrend and trading at yearly lows.

Fin. health
0

The company has a strong balance sheet with low debt.

Sentiment
0

Recent news and analyst commentary have been very negative.

The argument

Both sides of the sky

Every call has a case against it. Here's the honest version of both.

The bull case

  • The stock offers a significant dividend yield of 3.9%, which is high for the company.
  • Financial health is solid, with a low debt-to-equity ratio of 0.57.
  • The share price is near a 52-week low, which some investors might see as a potential entry point for a globally recognized brand.

The bear case

  • Revenue has been shrinking, with a recent decline of 2.7%.
  • The stock is in a strong downtrend, currently trading near its lowest price in a year.
  • Despite the price drop, the P/E ratio of 27.0 is still considered high for a company with negative growth.
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