Nike’s stock is dunking on the market this week

Companies with cultural cache like Nike are often in the spotlight. Right now, a much-hyped collaboration with Kim Kardashian, a viral marketing campaign, a top-prize Premier League payout, and, you guessed it, a series of train heists amounting to almost $2 million worth of sneakers being shoe-lifted in the US last year are all keeping the Swoosh in the headlines.

But there’s another reason the company is attracting attention this week. The footwear and apparel giant’s stock has been dunking on the wider market, just as fear has set into some investors’ minds, with Nike’s stock gaining 6% over the last five days while the S&P 500 Index has shed ~3%. That’s a welcome respite for Nike shareholders, who have endured the stock plummeting by more than 50% since peaking in November 2021, with its worst day ever in June 2024. 

Analysts cited by Barron’s on Monday raised their price target for Nike due to its “strong margin and earnings recovery opportunity,” off the back of the brand’s massive excess inventory pile being progressively cleared.

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