Valued at a market cap of $84.8 billion, NIKE, Inc. (NKE) is a leading global sportswear and athletic footwear company headquartered near Beaverton, Oregon. The company operates through three primary segments: Nike Brand, Converse, and Jordan Brand, offering a wide range of products including footwear, apparel, equipment, and accessories for men, women, and children

Shares of NKE have underperformed the broader market over the past 52 weeks. NKE has dipped 38.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 8.2%. In addition, shares of NKE are down 24.6% on a YTD basis, compared to SPX’s 4.7% drop.

Focusing more closely, NIKE has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 9.9% return over the past 52 weeks and a 12% YTD dip. 

Nike stock fell 11% in April amid concerns over new tariffs, weakening consumer spending, and disappointing Q3 results, which included a 7% revenue decline and a 10% drop in Nike Direct sales.

For the current fiscal year, ending in May, analysts expect NKE’s EPS to decline 45.6% year-over-year to $2.15. However, the company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.

Among the 36 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buy,” 16 “Holds,” and two “Strong Sells.”

This configuration is less bullish than a month ago, with 17 “Strong Buy” ratings on the stock.

On May 5, JPMorgan Chase & Co. (JPM) analyst Matthew Boss reaffirmed a “Neutral” rating on Nike while lowering the price target from $64 to $56.

NKE’s mean price target of $75.27 represents a premium of 32% from the current market prices. The Street-high price target of $120 implies a potential upside of 110.4%.