NIKE shares traded at $42.89 as of July 8, 2026, but a $36 price target and a Zacks Rank of 4, or Sell, suggest the reset effort has not yet created a compelling entry point. The stock’s forward price-to-earnings ratio of 23.02 times sits above the sub-industry’s 20.36 times, the sector’s 16.76 times, and the S&P 500’s 21.14 times, while its trailing multiple of 27.32 times also exceeds the industry’s 26.12 times and the S&P 500’s 26.98 times. Although fiscal fourth-quarter earnings of 20 cents per share beat the consensus estimate of 11 cents and revenue of $10.97 billion topped the $10.85 billion forecast, revenue still fell 1% year over year and management expects a low-to-mid-single-digit decline in the fiscal first quarter of 2027. Greater China revenue dropped 12% on a reported basis in the quarter, NIKE Direct revenue fell 7%, and Converse revenue plunged 32%, while the company’s $9 billion in cash and short-term investments provides financial flexibility. The current fiscal year earnings estimate has been cut 2.49% over the past four weeks and 10.46% over the past 12 weeks, reinforcing a cautious stance until the reset shows sustained, broad-based top-line improvement.
Nike IncZacks Rank 4 (Sell), price target $36, earnings estimates cut, and premium valuation despite weak revenue trends
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