Nike ,Tip -1.36%, The stock has been in the spiral below the last three years with a decline in sales, and it is losing its edge.

But not all hope is lost. The company reported just a strong earning, and this leader, so far, is in its industry. In fact, One Wall Street Analyst Nike stock shooting is 60% more in the next 12 to 18 months, even after 15% jump after earning.

Should you buy it today?

Getting back to game

Nike is dealing with many accidents. It is re -establishing partnership with wholesale vendors after cutting some of them a few years ago; It is returning to the top of its innovation pipeline; And this lifestyle is going back to sports after giving priority to products.

It has a new CEO, which has been pumped about the community, and he is making changes that the market is liking. A full turnaround is still in work, but Nike reported better earning 2025 fiscal fourth quarter (Ended on 31 May), and it seems that the plan is taking size.

Sales were 12% less than last year in the quarter, Nike direct sales below 14%. The gross margin declined by 4.4 percent, and the income per share declined by 86% to $ 0.14. If that does not like you, consider that Wall Street was expecting only $ 0.12.

Although there is a long way, the market appreciated the update of Nike and assured how it is progressing. CEO Elliot Hill restructured innovation to focus on lines instead of categories, keeping the athlete at the center. It also widen its wholesale channels to reach more customers in more places, including premium chain aritzia and Urban organizationWhich is towards the small shopkeeper. In particular, it is going back to sell Heroic Five years ago after a very public breakup.

Hill, a nike veteran who has been in the lead role since October, gave some important examples of progress:

• Launch through wholesale partners Dick game items And Jd.com Leaded for high sales.
• A day earlier it hosted a race in its LA-based store in Grove, a premium shopping center had its highest sales in three years.
• It presented its best look from the French Open final, which increased the sales 30% day -to -day sales.

Is Nike losing his grip in the first place?

Nike lead against its competition is so wide that there is actually no competition, at least for the first place. This gives some wigley room to fix things before correcting its mistakes and increasing the situation, but investors should not ignore risks.

Some of its contestants are performing better despite working in the same environment. Lululemone athleticaWhich has not recently affected the market, still reported an increase in sales in its most recent quarter and new brands. On holding Reported an increase of 43%.

I often quote Piper Sandler Stocking with adolescent survey is a good glimpse of how small customers are shopping because their trends increase future development. Nike is in the first place for the preferred shoe brand for years, and it finished first in the recent spring updates.

However, the share of Nike fell from about 60% to only 49% from the recent average. Convars, which has recently been painted at number 2, was not in the top three.

These conclusions are not worrying, but investors should keep in mind while taking decisions.

A global industry leader

Nike is still a brand to beat, and as it moves forward, it is more likely to make a real return. Many Wall Street analysts upgrade their price goals after a recent report including HSBC, upgrading the stock to a purchase and gave a price target of $ 80. Jeffers maintained its price target of $ 115, 60% higher than the recent stock price.

Nike also pays a growing dividend that produces 2.2% at the current price, which makes it attractive to passive income investors, while the company is still struggling.

If you have a long timeline, you can buy nike stock today and enjoy dividends while the stock comes back to work. This is one Blue chip stock That over time should offer back bounce and flexibility.