Nike looks overvalued at about 25.6x forward earnings for a business guiding to high-single-digit revenue declines. At $32 on $1.25 of EPS, per the lowered guidance @TrendSpider reports, plus a 5% dividend, tobacco stocks like Altria should triple if that is the going rate for shrinking sales. Nike does not merit a tobacco multiple: it angered its distributors, faces more premium rivals and new entrants, has less loyal customers, is no government-mandated duopoly and pays for costly marketing. … Show more

Nike is more expensive than Nvidia while guiding sales down. Nike guided FY27 EPS to $1.15-$1.35 against about $1.67 expected by the Street, putting it at 28x earnings versus Nvidia at 25x. Over five years Nvidia is up 1,013% and Nike down 76%. x.com 

Nike's valuation pays investors to wait for a turnaround that will take longer than expected. It trades at just 16x earnings, near its lowest valuation ever, with a roughly 5% dividend yield, and would need a 127% rally to regain its 200-week moving average. Revenue is projected to fall another 4% in FY2027, but the business will grow again; the market prices it as if it were disappearing. Unlike Novo Nordisk, Nike faces no patent cliff. x.com  x.com 

Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com 

Nike's 29x P/E even after a steep share-price decline leaves it expensive enough to short. x.com 

Nike's brand concerns look priced in; stabilization, not sudden revenue acceleration, is what the speculative long needs. A few good campaigns and a return to large stores could help, though China consumers will be a drag. Short-term EPS is a poor indicator, and customers may return after trying other brands. x.com  x.com 

Nike deserves a lower valuation than even 14x earnings, which is generous for a shoe company with shrinking revenue. It still trades above 20x earnings, while the S&P 500 trades at 19x with huge growth. x.com 

Nike's turnaround is looking much longer than bulls expected, and about 17x forward earnings is not cheap for a business growing low single digits. China sales fell 26% FX-neutral while Adidas' Greater China sales grew 15%, pointing to a Nike problem, not a China problem. Sportswear fell low double digits with Dunk revenue down about 50%, Jordan fell mid-teens, and most PACE savings are expected only in FY29-30; Performance grew high single digits. The must-buy price is $25. x.com  x.com  x.com 

Nike is the best stock to buy when others are fearful. x.com 

Nike isn't worth buying at 22x forward earnings when higher-quality businesses trade at similar valuations with stronger long-term growth potential and less execution risk. The alternatives: Nvidia at 19x, Reddit 24x, Uber 17x, Meta 20x, Constellation Software 16x, Topicus 21x, McDonald's 19x, Visa 25x, Salesforce 17x and American Express 17x. x.com