Mohammad Louay Alakhrass @Louayalakhrass: "Is Nike a Buying Opportunity..."

France

Is Nike a Buying Opportunity Right Now? 👟 Nike remains one of the strongest consumer brands in the world, but a great company doesn't always make a great investment. Here's why. 1. The turnaround still lacks conviction While Nike delivered what looked like a solid quarterly report, the underlying business hasn't shown a convincing recovery. Organic growth remains weak, constant-currency revenue is still declining, and Nike Direct continues to face pressure. Wholesale is improving, but not enough to offset the broader challenges. More importantly, the improvement in EPS and gross margin was helped by a one-time tariff reimbursement, making the results look stronger than the core business actually is. Until margins improve through better execution rather than non-recurring items, I remain cautious. 2. Demand remains soft The macro environment is still challenging. Consumer spending is cautious, China continues to underperform, and several key growth drivers remain under pressure. North America is showing encouraging signs, but one stronger region cannot fully compensate for weakness elsewhere. The long-term athletic footwear market remains attractive, but Nike still has company-specific execution issues to resolve before it can fully benefit from those industry trends. 3. Valuation still looks demanding Despite the stock trading well below its historical highs, I don't believe it is particularly cheap. A forward P/E around 25x is difficult to justify for a company experiencing modest growth and relying on temporary factors to support earnings. The dividend yield, currently around 3.8%–4.0%, is attractive, but the relatively high payout ratio raises questions about sustainability if earnings fail to recover meaningfully. What would change my view? I would become more constructive if Nike demonstrates: A sustained recovery in wholesale demand. Clear stabilization of Nike Direct. Margin expansion driven by operational improvements rather than one-off benefits. Better momentum in China. Stronger revenue growth and free cash flow supported by confident forward guidance. Bottom line Nike remains an exceptional global brand with significant long-term value. However, from an investment perspective, I believe the market is still paying a premium for a turnaround that has yet to be fully proven. Until I see stronger operational execution and more consistent fundamentals, I view $NKE (NIKE) as a stock to watch rather than one to buy aggressively. Sometimes the best investment decision is simply waiting for better evidence before committing capital. What do you think? Is Nike becoming a value opportunity, or is the turnaround still too early? 𝗠𝘆 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗢𝘃𝗲𝗿 𝘁𝗵𝗲 𝗬𝗲𝗮𝗿𝘀: 2020: +48.73% ✅ 2021: +14.44% ✅ 2022: -30.88% ⚠️ 2023: +34.57% ✅ 2024: +21.65% ✅ 2025: +21.91% ✅ 2026 (YTD): +18.10% ✅ 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: ✅ Total growth since inception: +172.07% 📈 Average annual return: +18.65% 📅 Profitable weeks: 62.96% 💰 Estimated dividend yield: 1.00% annually 🚨 Risk Score: 4–6 (Moderate) 🕰️ Long-term investor 🛡️ Diversified portfolio 🤝 Copy Trading 🤝 This portfolio is designed to generate long-term profits through both capital growth and dividends. Patience and emotional discipline are therefore essential when investing. If you decide to copy my trades, I recommend starting with a minimum of $400 and making sure to copy open positions as well. For more information about my portfolio strategy, feel free to visit my eToro profile and check the pinned post: “The Most Important Characteristics of My Portfolio” or click here: etoro.tw/4dqIcZA $NKE $SPX500 $GER40 $FRA40 $UK100

Not investment advice. The author may have financial interests in the mentioned instruments.