Athletic wear giant Nike (NKE) may have had a difficult year, but there are some signs of life still coming out of the stock. In fact, one report from CNBC detailed that a turnaround is in the cards, but not without a lot of struggle. Investors were not exactly interested in a long-term struggle, however, and sent shares down fractionally on Christmas Eve’s trading.
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After what some analysts called a “yearslong series of strategic errors,” Nike saw its single worst trading day ever in the summer of 2024. Shares fell a whopping 20% and took with it $28 billion worth of value at Nike. But Stacey Widlitz at SW Retail Advisors notes that a comeback may already be in progress.
Widlitz noted that, when Nike “….puts innovation behind their products, they can bring back growth.” However, Widlitz also pointed out that “…it’s going to be a long-term, painful process” to recover. Nike, back in 2020, started to pare back its wholesale partners to focus on direct sales during the pandemic. And while sales surged for a while, as stores reopened, Nike lost ground and new competitors started to move in as Nike’s produce line was seen as stagnant.
Preparing for Valentine’s Day
While we still have not yet celebrated Christmas, there are signs Nike is already getting ready for Valentine’s Day with a line of new sneakers for the special day set to release in 2025. There are some that will celebrate conventionally, including the “Love is in the Pair” line as well as Air Force 1s that have special rose styling. But for those who find themselves alone, Nike is ready to embrace you even when literally no one else will.
In fact, one model has an unexpected “mylar” look to it, and even features Nike lettering that looks like puffy balloon letters. If that proves entirely too much, the letters can even be removed, according to a report from Footwear News. The laces on said shoe, meanwhile, offer a play on the classic breakup line, reading “It’s not me, it’s you.” So whether conventionally or unconventionally celebrating Valentine’s Day, the end result remains the same: you bought shoes from Nike.
Is Nike Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 15 Buys and 17 Holds assigned in the past three months, as indicated by the graphic below. After a 27.96% loss in its share price over the past year, the average NKE price target of $86.75 per share implies 13.28% upside potential.
