Nike’s CEO sees the business in the “middle innings” of a turnaround, despite disappointing financial results expected. Shares are cheap based on the P/S ratio, but risky. The pandemic shifted Nike’s priorities toward e-commerce, leading to sales and profit pressures. CEO Hill’s “Win Now” strategy aims to strengthen the brand and relationships.

Nike’s stock has plummeted 55% since early 2021, but trades 63% below peak. Analysts predict a 0.9% revenue increase in 2026, with a 28% profit decline. Tariffs, China revenue drop, and tough competition pose challenges. Long-term prospects hinge on Nike’s ability to rebound in the next five years.

Nike’s brand power is a key asset despite challenges. Shares trade at a 40% discount to historical average, offering potential upside. However, financial improvement may take time, making it a high-risk, high-reward investment. Investors should carefully consider long-term prospects before buying.

Analysts forecast Nike to generate $46.7 billion in revenue in fiscal 2026, with $1.56 earnings per share. The company faces ongoing struggles such as tariffs and declining China revenue. Despite uncertainties, Nike’s brand strength and market share position it well for potential future success.

Read more at Yahoo Finance: Where Will Nike Be in 5 Years?