What's Going On With Nike's Stock?

Nike, Inc. NKE shares are moving Monday after the company reported fourth-quarter results and lowered its forward guidance last week. Here's a look at what's going on. 

What To Know:

Nike shares fell more than 20% Friday after the company reported worse-than-expected fourth-quarter revenue and weak forward guidance. 

Nike’s CFO, Matthew Friend, revised the company’s outlook for fiscal 2025 lower and now anticipates a mid-single-digit decline in reported revenue. Nike also projected first-quarter revenue to be down approximately 10% and a high single-digit decline in sales for the first half of the year.

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Nike said the expected decline in revenue is driven by aggressive management of classic footwear lines, ongoing challenges in digital sales, subdued wholesale orders, a softer outlook in Greater China and several timing-related factors.

Multiple analysts cut price targets on Nike following the print. However, the average analyst price target is $107.25, suggesting strong upside potential.  

Nike shares are moving on heavy trading volume Monday, and the stock is one the top trending tickers on WallStreetBets. According to data from Benzinga Pro, more than double the stock's average volume has already been traded in the session. 

NKE Stock Prediction 2024:

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Nike's revenue has grown at an average rate of 8.47% annually over the past 5 years. The average 1-year price target from analysts is $107.25, representing an expected 35.27% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Nike have seen an annualized return of -20.96%, underperforming the S&P500 index by 29.08%. This compares to 1.35% growth in the overall Consumer Discretionary sector. Nike has a beta of 0.78.

NKE Price Action: According to Benzinga Pro, Nike shares are down 0.08% at $75.31 at the time of publication Monday.

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