Here’s Why We’re Avoiding Nike For Now


  • Nike is currently priced for perfection amid a challenging macro backdrop.
  • Days sales outstanding have grown at a rate that raises concerns.
  • We believe the stock presents an asymmetric risk for investors.

Large NIKE store at night with many people's silhouette

Robert Way

Bulls, Rejoice

When Nike (NYSE:NKE) reported its second quarter earnings on December 20th, the market erupted. Prior to the announcement of earnings, shared had closed trading at $103. The following morning, shares began trading at $116 and closed at $115. The market, it seemed, was primed for good

Nike vs. SPY Since Earnings

Nike vs. SPY Since Earnings (Koyfin)


Nike DSO (Koyfin, Author’s Presentation)


Nike NTM PE (Koyfin)



Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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