NIKE, Inc. (NKE) Stock Analysis
Latest ClaritX AI analysis ·
NIKE, Inc., through its various subsidiaries, operates as a global enterprise focused on the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories for all ages and genders. Beyond its primary offerings, the company provides a range of athletic and casual footwear, clothing, and accessories under the notable Jumpman trademark. It also distributes a variety of casual sneakers, apparel, and accessories, featuring well-known brands like Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell. Under the NIKE brand itself, the company supplies a comprehensive line of performance sports gear and accessories, such as bags, socks, sports
| Metric | Value |
|---|---|
| Price | $33.87 |
| Market cap | $50.1B |
| Sector | Consumer Cyclical |
| Industry | Apparel - Footwear & Accessories |
| ClaritX AI score | 3/100 |
| Price/Book | 3.30 |
| Dividend yield | 4.84% |
| Beta | 1.11 |
AI verdict
NIKE, Inc. (NKE) has completely cemented its status as an uninvestable, highly toxic value trap, effectively broken by a catastrophic Q1 2027 earnings report that annihilated any remaining institutional conviction and revealed a horrific 26% revenue collapse in Greater China. Absolute momentum awareness defines the extreme severity of this structural collapse: despite carrying a historical beta of 1.11—which mathematically dictates the equity should aggressively capture broad macroeconomic upside—the stock has violently decoupled from market stability. It has plummeted an astonishing 53.2% from its 52-week high of $72.39, currently trading at $33.87, scraping near its freshly established absolute 52-week low of $31.97. This explicitly confirms severe idiosyncratic failure and total institutional abandonment. Fundamentally, the enterprise is paralyzed by operational rot and an entirely unsustainable capital return program. Nike is suffocating under an abysmal 103.53-day cash conversion cycle, trapping vital liquidity in 109.61 days of slow-moving physical inventory. Most dangerously, the optical 4.84% dividend yield is mathematically unfunded, with just $1.4188 in Free Cash Flow utterly failing to cover the fixed $1.64 dividend liability. With aggressive sell-side downgrades actively compressing the 1-month price target to $36.97, zero open-market insider buying, and management resorting to defensive layoffs, the equity offers absolutely zero structural margin of safety. Rati
What this score has been worth
ClaritX scores NKE 3 out of 100 (snapshot 2026-10-05).
Every ClaritX analysis is scored first and judged only on what the stock did afterwards. Across the 117 analyses that scored in the 0-49 band, the average forward return was -4.2% with a 32% win rate, -9.0pp against the S&P 500. That is a measured tendency across many names, not a forecast for NKE — roughly 68% of stocks in this band still lost money.
The full band-by-band table, including the bands that lost, is on the AI Rank Report; the live strategy arms behind it are on the AI Track Record, losses published.