How Is NIKE's Stock Performance Compared to Other Consumer Staples Stocks?

NKE +0.47%

Beaverton, Oregon-based NIKE, Inc. (NKE) designs, produces, markets, and sells athletic footwear, apparel, equipment, accessories, and services. Valued at $94.1 billion by market cap, the company offers products under the trademarks NIKE, Jumpman, Converse, All Star, Star Chevron, and Jack Purcell, as well as operating digital platforms with fitness apps, wellness content, and retail services.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and NKE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the footwear & accessories industry. NKE's strong brand and innovation drive its success. The iconic "Just Do It" logo and slogan resonate globally, fostering loyalty. The company invests heavily in demand creation and digital platforms to engage consumers and set trends.

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Despite its notable strength, NKE slipped 22% from its 52-week high of $82.44, achieved on Feb. 26. Over the past three months, NKE stock declined 18.2%, underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 2% drop during the same time frame.

In the longer term, shares of NKE fell 15% on a YTD basis and dipped 17.1% over the past 52 weeks, underperforming XLP’s YTD marginal gains and 4.5% losses over the last year.

To confirm the bearish trend, NKE has been trading below its 50-day moving average since early September, with slight fluctuations. The stock has been trading below its 200-day moving average since early October, with minor fluctuations.

NKE’s performance has been impacted by the tariffs slapped by the U.S., adding around $1 billion to its costs. As a result, the company expects footwear costs to rise, and it plans to reduce China-sourced U.S. shipments to high single-digits by fiscal 2026, aiming to mitigate the cost impact.

On Sep. 30, NKE reported its Q1 results, and its shares closed up more than 6% in the following trading session. Its EPS of $0.49 surpassed Wall Street expectations of $0.27. The company’s revenue was $11.7 billion, topping Wall Street forecasts of $11 billion.

In the competitive arena of footwear & accessories, Deckers Outdoor Corporation (DECK) has considerably lagged behind the stock, plummeting 57.1% on a YTD basis and 55.2% over the past 52 weeks.

Wall Street analysts are reasonably bullish on NKE’s prospects. The stock has a consensus “Moderate Buy” rating from the 36 analysts covering it, and the mean price target of $82.43 suggests a potential upside of 28.1% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com