AI Analyst Summary
NIKE is a storied global footwear and apparel brand trading at a historically discounted valuation (~19.5x trailing P/E) amid a strategic turnaround, with EPS up 428% YoY on aggressive cost discipline and a perfect recent beat streak. The bull case rests on a top-line inflection as new management rebuilds wholesale relationships, refreshes the product pipeline, and cycles past DTC headwinds — with the $50.66 consensus target implying ~23% upside from current levels. The key risk is that revenue growth (-1.1% YoY) has yet to recover, and any delay in the demand revival could pressure both earnings and sentiment given the large Hold cohort among analysts.
Fundamentals
Pe
Trailing P/E 19.5x / Forward P/E 17.9x · 4.0/5
At 19.5x trailing and 17.9x forward, NKE trades at a meaningful discount to its historical premium and below the broader consumer cyclical sector median for a brand of this quality. Valuation appears reasonable and growth-justified given the recovery setup.
Peg
PEG 1.51 · 3.0/5
A PEG of 1.51 is moderate — not cheap, not expensive. The elevated reported EPS growth is partly a function of a low prior-year base, which inflates the ratio favorably. Neutral signal overall.
Analyst Rating
Hold (2.5) · 3.0/5
Consensus sits at exactly 2.5 on the inverted scale with 12 Buy, 24 Hold, and 3 Sell across 34 analysts. The large Hold cohort reflects widespread caution around the revenue trajectory and ongoing turnaround execution risk. Sentiment is neutral, not constructive.
Earnings Trend
+428% YoY EPS growth / -1.1% Revenue growth · 3.0/5
The 428% EPS surge is largely base-effect driven following a weak prior-year comparison rather than structural acceleration. Revenue declining 1.1% YoY signals the top line has not yet turned, tempering the headline earnings figure. Trend is improving but not yet durable.
Price Target Beat
4 of 4 quarters beat (last 4 quarters) · 3.0/5
A perfect 4-for-4 recent beat rate is encouraging, but the scoring framework requires 8-quarter history for a higher score. With only 4 quarters of data available, a neutral score of 3 applies per guidelines.
Management
Turnaround in progress under new leadership · 3.0/5
New management has restored near-term EPS execution with a 4-for-4 beat streak, and is executing cost discipline. However, revenue contraction suggests the demand-side strategy is still being recalibrated. Capital allocation and brand reinvestment remain works-in-progress; management scores neutral until top-line inflection is demonstrated.
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