Is It Too Late For Nike? NKE Stock Deep Dive

It is a sad day for Nike investors. What's going on, guys? It's Ricky with the Technical Solutions. Just wanted to talk about a few different companies, three in fact. The first one is going to be Nike. I wanted to talk about some opportunities, but also maybe some signs that were pretty clear on maybe why we could have stayed away from Nike, but now also for some of you that might view it to be a good deal, could there be a turnaround story or is it too late for Nike? The reason we're talking about it is not only did it hit fresh new 52-week lows at $37 and like $0.70, but also it is down nearly 80% from its highs of 163, right? During the post-pandemic rally, everything looked unstoppable until it wasn't, right? Then it followed with nearly a 12-month decline. This is what a lot of people forget is that when markets are irrational, maybe kind of like we're experiencing now, during these bull market during these bull markets, it it looks unstoppable. But then as you can see, during irrational levels, there's these quick corrections that followed from 163 to lows of 80. That was a 50% decline within itself, and then it tried to recover, lower highs, and it's been descending ever since then. That's technically speaking. Jumping into Investing Pro, again, if you ever want access to the software, it's the first link in the description down below, but very quickly, you can see that the fair value says that there's 46% upside, but it's still trading at an 18 X P ratio, yet it's lost 80% of its value. It's not as cheap as it possibly could be, and the reason behind that is not only is the stock falling, but so is its revenue. This is a company that produces revenue of supposedly $46 billion, but net income at 3.1 billion, and it's only expected to decline even further. Again, when you look into the Pro Research, you can quickly see that this is the revenue for the past few quarters. It's disgusting. You can see why Nike itself has fallen apart, right? A beautiful household name is completely losing itself. Um and if you look into uh what's it called? Uh let me pull it up here. The latest insight. The thing that I really want to highlight is not only with the series of downgrades, but the greater China revenue decline. The part that is really concerning is that a bunch of executives, the C uh what is that? The CAO, the CFO are all resigning, right? During a very critical time of this company. Seems like they're just beginning to call it quits, right? So, internally, it just looks like it's falling apart. Revenue-wise, it looks like it's falling apart. Technically speaking, it looks like it's falling apart. The reason I wanted to talk about this is I'm going to love following up with this and see if it is a turnaround story. It's not that we want to blindly buy the dip on tonight uh in tonight Nike uh knowing that again, I would rather be late to a rally than early to a sell-off. The cheap can always get cheaper and that's something that we always share with our LPP team. So, I just wanted to talk about it because yes, it is aggressively selling off, but it's something that we do maybe care to watch, but definitely don't care to buy early on knowing that things can get worse before they get better. Uh the reason we're talking so much about it right now is the news came out that it's getting removed out of the S&P 100, right? Dell, Pond, um or what's it called? Palo Alto and Arista got added to the S&P 100 and then a few including Nike got removed out of the S&P 100. The one that I do want to talk about next or uh the last stock is going to be Bloom Energy. And that's because it just got added to the S&P 500. So, very big news, right? Um and that is why there's been so much of, I would say, of a reaction to what's been going on with Nike because this was reported after hours. So, it's going to be very interesting to see on Tuesday once markets begin to open to see how it begins to actually trade. How much lower can it go already being down nearly 80%? The next one that I wanted to talk about is Lululemon. Lululemon reported earnings and from highs of a What was that? 120 per share all the way to lows of 96. Another great example that the cheap can always get cheaper. Another company that did very well during the post-pandemic rally, it crashed, it rallied once again at that high tail end of 2023, 2024. We corrected, but it looks like it's had reach V-shape recoveries before. So, now it's approaching levels that we've traded at back in 2017, 2015. So, it's going to be very interesting to see if it just has a technical support and if that recovery begins to present itself. An extremely oversold stock, but also extremely bearish, right? If you pull up Lululemon in a very similar fashion, yeah, it has huge fair value upside, 71%. There's just been a bunch of downgrades along the way. It trades at a 7.9 P ratio, $11 billion in revenue, $1.4 billion in net income. And when you look at the Pro research, again, not as terrible as Nike, but it looks like, again, internally, it just looks like it's been falling apart. You can see the consistent lower highs, lower lows. I wanted to maybe add this one to your watch list to see if it's something that meets your criteria and then follow up with it once we actually begin to see signs of a confirmation. Now, talking about a bullish stock, Bloom Energy. It's been absolutely killing it this year from lows of what is that? $15 per share all the way to highs of 351. It's pulled back and it's no stranger to volatility. So again, if you're a beginner, this is one that you're going to have to be very careful with just because volatility comes at a greater form of risk, but direction seems to be favorable and as long as you don't use leverage and you understand overbought and oversold levels and when to buy and maybe when to trim or take profits, then this is something that can work with you nicely, right? We're testing a a recent resistance range right around the 250s, but if it breaks above this and the momentum continues, who's to say that it can't go back to retest same previous highs. Now again, when I talked about this, a little bit more speculative. If you actually type in BE to the Investing Pro software, you can see that the fair value, there's 52% downside. This is a company that barely makes any money, but it's expected to grow at a very quick rate, right? 304 P ratio. It's going to be very interesting to follow up. Again, these are great performing stocks right now, but will they continue to be? Something we're going to have to follow very closely. And if we click at the Pro research just to get a better look, you can see that again, the growth, especially revenue wise, has been very aggressive. So you can see why the price action is following at such an accelerated rate. Remember, FOMO shouldn't be a reason you jump into a stock. It's really asking yourself, is it worth the premium of paying of what you can get it at right now based off of the potential for profit and where you can see it to go, but it all comes at some form of cost. Is it worth the risk? And that's something that you have to decide for yourself, right? Again, I'll make sure that I do my part in keeping you guys up to date. I'm so excited to be back in Arizona and to start our live sessions back up with our LPP team. Whenever it is that you're ready to join us, again, like I've said before, we go live every morning at market open. If you guys ever want to tune on in, it's the second link in the description down below. You can click and enroll now and take advantage of the current sale we have going on. Even before you join, I encourage you, watch a recent live session so you understand exactly what to expect before you join our LPP team so there's no surprises. One-time payment, lifetime access. You can get it for a discount right now. And don't forget, you can also sign up for Investing Pro if you don't have that fundamental analysis tool. Again, everything is linked in the description of this video. I appreciate you guys' time. Hope that we end the thumbs up and like always, let's make sure that we end the year on a green note. Take care, team.