NIKE today
01/14/2025 to 03:58 PM Eastern
- 52-week range
- $70.53
▼
$107.43
- Dividend yield
- 2.25%
- P/E ratio
- 20.37
- Price target
- $89.96
Shares of the athleisure giant Nike Inc. NYSE: NKE There are shares was in a steep decline For more than 2 years, shedding a staggering 60% from their all-time high in late 2021. As we move into the first couple of Weeks into the new year, they are still struggling to find buyers, trading at levels last seen in 2018. Wall Street is Keeping a close eye on The Oregon-headquartered company is under increasing pressure to turn things around.
But for those of us on the sidelines, it might be time to start paying attention. Although the downward trend has been brutal, there are several reasons to believe that 2025 may be the beginning A huge comeback Rally for Nike. Let’s jump in and take a look.
Elliott Hill Takes Over as CEO: A New Era for Nike?
Beginning with Nike’s basic performance, 2024 c A mixed bagTo say the least. While the company delivered some solid headline number beats throughout the year, margins continued to feel squeezed by rising costs and a Increasingly competitive market. That said, Nike ended the year on a high note, beating expectations with its latest earnings report in December.
This late-year momentum is a positive sign for investors, even if revenues are down year-over-year. Adding to the optimism, Nike recently brought in Elliott Hill as its new CEO, a move that has analysts and investors buzzing. Hill has a reputation for driving operational efficiency and reviving struggling brands, hence February earnings report Will be closely watched To see if his influence is already having an effect.
Bullish analysts upgrade signal confidence in Nike’s turnaround
NIKE stock forecast today
$89.96
26.55% upbuy medium
Based on 30 analyst ratings
| High forecast | $120.00 |
|---|---|
| Average forecast | $89.96 |
| Less predictable | $70.00 |
Add the possibility of a turnaround Nike has received a flurry of bullish analyst updates in recent weeks. In a note to clients, Piper Sandler’s team last Friday upgraded its rating from neutral to overweight, a Latest price target of $90. From where the stock closed on Friday, it points to a target upside of some 30%.
Piper Sandler is not alone in her optimism. DA Davidson, Trust Financial, and Robert W. Baird issued buy ratings on Nike in December, highlighting his confidence in the company’s ability to bounce back. Piper Sandler’s analysts are particularly encouraged by CEO Elliott Hill’s “urgent urgency” to address the challenges facing Nike.And The company is expected to return to profitable growth by late 2025. For investors who like to get in on the ground floor of a potential rally, this is becoming one Attractive entry point.
The risks of change: Why some analysts are urging caution
Of course, no turnaround story is without its risks. The stock has started 2025 with six straight days down, a streak that shows how much the bears still control the narrative.
Moreover, while many analysts are enthusiastic, not everyone is convinced. December also saw a handful of holds and neutral repeats with analysts urging caution. They are waiting to see if the new CEO can deliver original The results before making any big calls, and some worry about prolonged pressure on Nike’s margins.
Why Nike’s Current Setup Appeals to Bargain Investors
These are valid concerns, but for Investors who love a bargain Out there, there is A lot of things More to like than dislike at this point. Even Nike’s technical setup is another reason to be optimistic about the comeback. The stock’s Relative Strength Index (RSI) is currently sitting at 28, a signal That it is oversold and likely poised to see a bounce.
On top of that, shares are back-testing long-term support levels that date All the way Back to 2018. This area should provide a solid foundation from which bulls can build, especially as broader market conditions improve.
for Those of us are happy to lean into the bullish outlook of analystsThis looks like a great entry opportunity. With a compelling mix of strong fundamentals, bullish sentiment from analysts, and technical signals pointing to an oversold position, there are Therefore Lots of reasons to be excited about Nike in 2025.
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