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With all the negative trends surrounding Nike, where is the bottom, and at what price, if any, does the stock become attractive?
- Nike is trading at a 52-week low and is actually lower than it was 10 years ago.
- Sales have been declining quarter over quarter.
- The company is set to be removed from the S&P 500 Index after its market value dropped sharply over the past year.
- Negative publicity surrounding its advertising campaigns and turnaround efforts.
I.e it all seems like a nightmare for Nike, with the stock price suggesting that the company has completely lost its way.
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I am researching it now as well. Basically, Nike is trading at around 1x annual revenue and 18x its compressed earnings, which I believe is cheap given the strength of its (still) huge brand. However, there are indeed a lot of negative factors.
The key question, in my opinion, and the one that will...
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Lol, TJX was at a year high in June '26. It is still a great business and will be back. The decline is quarterly fuss.
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This is mainly due to Other Income (i.e. non-operating), which accounted for more than half of Net Income (and, thus, more than half of EPS) in Q1 2026. If you look at their Income from operations, the growth was ~29% in Q1 `26 vs. Q1 `25.
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At the end of 2024 and beginning of 2025 it was Visa for me, primarily due to relative cheaper valuation. In addition I believe its Network of Networks strategy is attractive on a long-term basis.
However, given current 33-37 p/e I think it is a bit stretched for both, unless your time horizon in ...
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Do you mean decrease the EV by net debt? I.e. as it is negative it is effectively decreasing EV.
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