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Nike (NYSE: NKE) has long been a dominant force in the athletic apparel and footwear industry. However, recent stock struggles have raised questions about its future.
With Jefferies upgrading Nike to a “Buy” rating and forecasting a potential 50% surge in stock value, investors are wondering: Is now the right time to buy Nike stock?
In this article, we compare Nike’s performance against key competitors like Adidas and Lululemon, analyze market trends, and explore whether Nike is poised for a major comeback.
Nike’s Recent Stock Performance
Nike’s stock has been on a bumpy ride over the past year, dropping significantly due to declining revenue and inventory challenges. However, recent developments have sparked optimism:
- Jefferies upgraded Nike to a Buy with a $115 price target—a 50% increase from current levels.
- The company’s leadership shift under new CEO Elliott Hill is expected to bring renewed focus on product innovation and wholesale partnerships.
- Nike’s stock is up 5.12% year-to-date, nearing its 200-day moving average, a sign of potential bullish momentum.
But how does Nike compare to its competitors?
Nike vs. Adidas vs. Lululemon: Market Comparison
| Company | Stock YTD Performance | Revenue (Q2 2025) | Key Strengths |
|---|---|---|---|
| Nike (NKE) | +5.12% | $12.4B (-9% YoY) | Global brand power, athlete endorsements, innovation in sportswear |
| Adidas (ADDYY) | +8.3% | $6.9B (+4% YoY) | Strong European market, innovative sneaker collaborations |
| Lululemon (LULU) | +12.7% | $2.2B (+18% YoY) | Premium activewear, strong direct-to-consumer sales |
Adidas has been gaining ground with smart collaborations and a focus on European markets, while Lululemon continues to thrive with its premium athleisure segment.
Nike, however, is focusing on returning to its roots—basketball and running—where it has historically dominated.
Key Catalysts for Nike’s Comeback
-
Leadership Shift & Strategic Refocus
- CEO Elliott Hill’s return signals a renewed focus on core sports categories.
- Strengthening wholesale partnerships to regain lost market share.
- Expanding Nike Direct, its direct-to-consumer (DTC) channel, for better margins.
-
NikeSkims: A Game-Changer for Women’s Activewear?
- The Nike x Skims collaboration with Kim Kardashian is set to attract a new consumer base.
- Women’s activewear is a rapidly growing segment, and Nike aims to capture more market share.
-
Inventory & Supply Chain Improvements
- Nike’s inventory backlog is clearing, allowing for new product innovation cycles.
- The upcoming restocking cycle could drive stronger sales growth in 2025.
Should You Buy Nike Stock Now?
Nike’s stock is currently trading at a discount compared to its historical valuation. However, the potential 50% upside hinges on:
- Successful execution of CEO Elliott Hill’s turnaround strategy.
- Strong demand for new product lines, including NikeSkims.
- Continued recovery in direct-to-consumer sales.
While Lululemon offers faster growth and Adidas is gaining ground, Nike’s brand strength, innovation, and leadership changes make it a compelling investment for long-term investors.
Final Verdict
Is now the perfect time to buy Nike stock?
✔️ If you believe in Nike’s ability to reclaim its market dominance, this could be an excellent entry point.
❌ If you prefer faster growth stocks, Lululemon or Adidas may be more attractive in the short term.
As Nike stock nears key technical levels, investors should watch closely for earnings reports and new product launches before making a final decision.
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