Seeing that Nike stock is now below $50 a share and it is now at the lowest PE ratio its been at for a long time. I'm wondering if it's a good price point to start a position. I know there has been competition in the running category, but it seems to be less talked about. I still feel that they make the best basketball shoes (for those who actually play). Thoughts..
Posted by Variation261
28 Comments
High debt, low margins, PE still higher than competition (still over 25 somehow)
It’s a pass for me, personally
gotta wait till trump is gone.
Increase in EPS is based on forward looking growth that the company will have. They may make cool shoes but the don’t really have a solid path to +10% YoY growth without raising prices which consumers are already not paying. The 5 year CAGR is 4%.
Also, basketball shoes make up about 8% of their revenue…..
I bought a nike sweatsuit recently, the quality does not match the price tag. They need to figure something out. I can’t invest just because they have a cool logo and slogan. Pass for me.
Nike is dying. Not investable in current state.
Dead money.
Its a LOOOOOOOONG hold if you want to make money in it.
Who wants to invest in a dying clothing company. Are y’all really down that bad?
Not much of the public is buying basketball shoes
The brand doesn’t have the appeal it once did, and they really don’t stand out as anything special in the saturated expensive apparel department. Add on that tariffs and such, I wouldn’t touch it.
Invested $500 the other day should I cut my losses and invest elsewhere ATM id be losing about $50
Falling knife.
33$ I’ll buy till then will wait
Why do you think 30 PE is a good deal for Nike??
competition and reports of quality control have eroded reputation and market share
Never buy inept management
Well hear me out: why would an average consumer in their right mind spend couple hundred bucks on expensive wardrobe item while there better ones available for far more reasonable price?
Here’s ur answer.
I mean…look at the PE history and see how low it can go. Worst-case scenario is another 50% down from here, even though it’s already -75% from ATH. [Here’s a chart, if the link works.](https://ycharts.com/charts/fund_chart_creator/fool/#/?annotations=&annualizedReturns=false&calcs=id:pe_ratio,include:true,,&correlations=&dateSelection=range&displayDateRange=&displayTicker=false&endDate=&format=real&legendOnChart=false¬e=&partner=fool_720"eLegend=false&recessions=false&scaleType=linear&securities=id:NKE,include:true,type:security,,&securityGroup=&securitylistName=&securitylistSecurityId=&source=false&splitType=single&startDate=&title=&units=false&useEstimates=false&zoom=max&aiSummaries=&chartId=&chartType=&customGrowthAmount=&dataInLegend=value&lineAnnotations=&nameInLegend=name_and_ticker&performanceDisclosure=false&useCustomColors=false&hideValueFlags=false)
That being said, there’s almost certainly going to be a tradable bounce from this move.
Just like how sneaker scalpers moved to pokemon cards, I am also moving on from shoes stocks.
I would stay out of anything retail/fashion as a general rule of thumb. Given how certain trends and fashion preferences rapidly fall in and out of public favor, everything in that sector is a meme stock, including the big ones like Nike.
This is the furthest thing from a bargain. It trades at a very high forward PE.
Nah it’s going lower based on some news I saw.
Dude walk around in your nearest city. Are people wearing Nike stuff anymore? If you have kids ask them if Nike is cool. The fundamentals don’t mean as much in C&R stocks like this one. Consumer sentiment and fashion are far more important. When I was a kid everyone had or wanted Nike shoes. Nowadays kids aren’t wearing them at all.
Nike is a dying company.. Basketball is a dying sport.. I wouldn’t touch it.. the competition in this space is crazy and they’ve taken a lot of social hits over the past few years.. putting your money here is basically dead money until a new executive team comes along or they get bought out..
Got lucky and sold this turd around $74
38.5 🍀
I’d avoid it. It’s been on a downward trajectory for years. How many old jordans can they sell? They aren’t “aspirational” to the households with money, and those at the other side of the “k economy” can’t afford their product.
I don’t think Nike has the cache with younger Gen Z and alpha customers either.
Their old rival adidas, shit I can buy shoes from them for $25 all day. Sweat pants for $14. Better value.
I feel the same about under armor. Another brand that’s “had its day.”
The best basketball shoes? Lol
Just do it