You Can Do Better Than Nike. Buy This High-Yield Dividend Stock Instead.
Investors have been waiting for Nike (NYSE: NKE) stock to turn around for a long time. It's important to have a long-term investing mindset, but it's also critical to know when to pivot. Over the past five years, Nike stock has posted a negative 25% average annualized return. This year, it's worse, with shares down 40%. Its woes have been well documented . There was a leadership change a year ago, and a new strategy that, in part, focuses on rebuilding the wholesale channels. But challenges persist, and sales and earnings were down year over year in the most recent quarter due to declines in China and sputtering sales for its sportswear and Jordan brands, which account for half of its revenue. And in its fiscal 2027 guidance, Nike doesn't expect much, if any, improvement. Revenue is anticipated to decline in the high single digits in fiscal 2027 while adjusted earnings are targeted for $1.15 to $1.35 per share, down from $2.10 in fiscal 2026. And Nike stock is not even that cheap, trading at 17 times earnings and 21 times forward earnings. Continue reading