Market Insight: The Nike Stock Shows Where Valuations Hit Their Limits
Not only has the US company's stock price fallen, but also its valuation. But anyone who buys solely because of this is making a mistake, says Handelsblatt editor Andreas Neuhaus.
Nike's stock has lost around 80% of its value since its peak in November 2021. The company's growth has stagnated due to strategic mistakes and new competitors, with its revenue only 4% higher and net profit 45% lower in the 2025/26 fiscal year compared to May 2021. The stock's valuation appears attractive with a price-to-earnings ratio of 17, but analysts are skeptical about the company's growth prospects.
Analyst Lorraine Hutchinson from Bank of America expects Nike's turnaround to be delayed until 2028 and has downgraded her rating to "sell", while only 13 out of 44 analysts recommend buying the stock.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
