Author argues Nike is a value trap at $61 given premium valuation on shrinking earnings and weak ROIC, waiting for $45.
NKE — AVOID Author argues Nike trades at 36x earnings, above its historical average, while revenue is flat or negative, so investors are paying a premium for shrinking earnings. A DCF assuming recovery to $3 FCF/share yields only ~$58 fair value, and ROIC has fallen to 10%, barely covering cost of capital. Author calls it a value trap until earnings bottom and is waiting for $45 to get a real margin of safety.
Feels like a value trap until earnings actually bottom. i'm waiting for $45 to get a real margin of safety.
This Reddit post, published February 02, 2026, features u/SmartTriageIO discussing NKE. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/SmartTriageIO · Tickers: NKE