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Is Nike Stock A Buy At $100?

Jul. 05, 2022 10:58 AM ETNIKE, Inc. (NKE)1 Comment
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GARP Businesses


  • Growth has stalled due to continued weakness in China and recent weakness in revenue in the US.
  • While Nike's Digital and Direct to Consumer strategies have paid off in terms of gross margin expansions, it will at most plateau in the short term.
  • Short-term headwinds outweigh positives (growth in certain areas such as Korea, India and Mexico) with no short-term catalysts in sight make this a hold.

Nike"s Quarterly Earnings Surpasses Expectations

Joe Raedle/Getty Images News

Why has Nike stock been dropping?

Year-to-date, NIKE, Inc. (NYSE:NKE) has fallen by almost 40%, a significantly larger drop than both the S&P 500 (VOO) and the Consumer Discretionary ETF (XLY) it belongs to.

This article was written by

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Interested in different businesses around the world, particularly if incumbents can innovate quicker than if distributors can gain scale. Looking forward to sharing my views and hearing different opinions.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

Katelyn Cate profile picture
I actually think they can push their DTC wedge a bit more, but I largely agree that NKE is not a buy. The valuation is still too rich for me and I'm not even going to look until it goes under $90. I'm very interested at <$80 but I don't know if we ever see that price on an industry leader like NKE.
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