Why Is Nike (NKE) stock CRASHING?! | 52 Week Low And Undervalued? | NKE Stock Analysis! |

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In this video we will analyse Nike (NKE) stock using our 4 valuations methods to get to our intrinsic value. We will then apply a margin of safety to get to our acceptable buy price.
We will also take a look at the dividend safety and other key financial metrics. Let me know your thoughts in the comments.
I am not a financial advisor or licensed professional. Nothing I say or produce on KZbin or anywhere else, should be considered as advice. All content is for educational purposes only. I am not responsible for any financial losses or gains. Invest and trade at your own risk.

[@DividendTalks]

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[@TheDGICrab]

I’m buying. I covered it today on my channel as well. Be greedy when others are fearful and I smell a lot of fear today.

[@Hazel66781]

I think it's going to get down to $55.

[@krypton1142]

Thats not gonna happen, even during the worst times it hasnt dropped that low

[@heyflo1]

They've projected the revenue going down next year aswell and as they've been missing their own estimates, so the market is punishing the stock really hard and rightfully so. They had a premium valuation but they're not premium anymore as they're not growing revenue, margins, fcf. So I won't be surprised if the stock went from $90 to approx $50-55.

[@mrseaweed1000]

On the ball as usual, thanks for the speedy video!

[@DividendTalks]

My pleasure! 😊

[@NathanXSavage]

It's a high quality company with a strong moat and historically outperformed the S&P till literally right now it's in line. Easy buy for me under $80.

[@yogaflame30]

As much as I like Nike shoes this company does not have a moat. There are so many companies that produce shoes. Probably, Nike just spends a lot of money on marketing to be the market leader.

[@NathanXSavage]

@@yogaflame30 it’s literally a moat, one of the most recognised brands in the world. It’s a leader in its field by a mile as well. Adidas is second and Nike is over 50% ahead in sales. Let the competition keep coming. Take them a decade to get anywhere near. Yes new companies come up all the time, most of them you see bankrupt in a few years. You can say that for any industry. I sleep well at night owning Nike with its dividend at these prices for sure.

[@nadavatar123]

@@yogaflame30 Their brand is their moat

[@forretresss]

@@yogaflame30 Nike brand is everything. Would you be caught wearing Deckers or Skechers outside the house? No.

[@kurniawanms2]

@@yogaflame30 This is like saying Hersey does not have moat because many companies can make chocolate bar. This is like saying Pepsi does not have moat because many companies can make soda. This is like saying Starbucks does not have moat because everyone can make coffee.

[@bluezaton]

"Nigh-key"

[@Intheknow-z7j]

Will continue to fall in price for a few more weeks.

[@franciscos.357]

I think in this video I have to respectfully disagree. You did a 9% growth DCF Valuation even when Nike is telling you that sales will shrink in 2024 and 2025. You also used a 8% discount rate (too low for real returns required by investors). Of course the result will be undervaluation. You will get a very different (and negative) result using 6-8% growth and a 10% discount rate.

[@DividendTalks]

You have to bear in mind when valuing we are not looking at just the next year or two but further out. If you believe sales will continue to shrink and market share be lost then it’s likely not to be a stock for you to add. Having said that, putting your % into the model, so a 10% discount rate and 7% growth (I went for the middle), the intrinsic value comes out at $58.64. Appreciate your perspective and always love to hear comments and any challenges 😊

[@AigarsLasmanis]

well done on valuating the company in the short term. By the time it recovers, you will be too late to jump in. I guess you are the one who sells when theres a panic 😂 Buy high, sell low. Good luck!

[@efiroozy]

Intrinsic value is in 40s

[@Ravi-re1bt]

​@@efiroozy😂

[@kurniawanms2]

@@efiroozy $40? That should be $NVDA intrinsic value

[@billcarruth8122]

Walgreens and Nike are legacy companies. Not every company is going to exist for all eternity, so we may just be witnessing certain things in their inevitable demise. Walgreens business is being scooped by a small online vendor called Amazon, and Nike is a fashion company with a CEO that has no history in fashion. Tastes, trends, and shopping habits change, and one trick ponies who who don't turn left or right will eventually come across a cliff.

[@lukeearthcrawler896]

Biggest issue for all apparel companies? Demographics. The largest age cohort in the West are Millennials, who are now in their mid 30s. They do not have as many kids as previous generations, so overall the population is aging rapidly. You know who buy less apparel? Old people. The last decade were the golden years for Millennials as young consumers. I wouldn't touch any of these apparel companies for retirement portfolios. Trading them short term? Sure. Long term? No way, Jose. BTW, at mid30s Millennials are now looking to become home owners. With an inflated housing market in the West, good luck selling Millennials fancy sneakers. My guess: many will downgrade to cheaper brands and/or buy fewer pairs.

[@T.SMafia]

It's time for buy to me

[@ericho1556]

dambaxss CEO lead nike to funeral, god bless

[@erichart5587]

I don’t think competitors are taking market share I think economy is slowing down fast and pee aren’t spending

[@alexng7977]

Yeah you are right, competitors like asics, new balance and hoka are taking market share. But we’ve seen this in the past with UA and Addidas. Short term idk, but long term it’s a great play. Nike will always be the giant of athletic apparel. All the big athletes are signed to Nike. I’m personally going to keep loading up when it’s under $80.

[@PainandSorrow]

It's probably both.

[@forretresss]

Right now it's a retail recession. Everything retail related is getting hammered because of the high interest rates from the FED.

[@tradingfundamentals]

I think it's an overall economic slow down too. They have the shoe market around the globe.

[@filb]

I own them at 100 something dollars and I'm down 27%. Their FCF payout ratio for now is pretty solid, my only question though remains should I deploy cash on it now or wait and see if it's a falling knife. Another strategy is buy 500$ worth of shares for Nike now and wait another quarter before adding more. The downside is that the price might recover a little bit, but on the other hand, it will give me a chance to see if they can easily beat next earnings call since they are guiding softer numbers.

[@cwilson6880]

I opened a position last fall and DCA weekly. I deployed 2X my usual amount today and will likely continue as it continues to fall. I personally think the market over reacted as NKE ha ben warning on weakening sales #'s for quite some time. All in all, dividend is safe and likely will continue to grow. This is a 5 year+ play for me, so I'm ok with the negative short time frame price action. Best of lunch out there!

[@filb]

@@cwilson6880 When it hit 75$ today, I finally pulled the trigger and put a small amount and I will see where the price will be every month until the next quarter. If it drops more, I'll be adding more.

[@BennyHarassi]

I just love when people pronounce Nike like Mike

[@AyjayAlleyway]

As of this morning, my position is massive

[@mikeeccle4447]

What you think of Macdonalds?

[@justinfaust4529]

Love your videos, tons of valuable insight on value investing. I have bought some more Nike share at the dip. I think it could be a good growth and dividend stock in the next few years.

[@DividendTalks]

Thank you Justin, glad you enjoy them! I also believe over the longer term Nike will be good and it does look like it has a nice margin of safety at the moment 😊

[@felixdavinci]

Go woke and go broke, haha!

[@jo5128]

Def buy

[@cwilson6880]

Your IV is only $2 since the last analysis a month or so ago, and $10 less on Wall St estimates. I can see the argument from many that NKE will continue to lose market share and they're business will contract. Personally, I do not think that is the case, and believe they may continue lower into 2024-5, but will eventually bounce back. My avg cost is just above $90 until today: just bought a handful at the close, and will continue to DCA lower. The'll bounce back, maybe not to ATH's but will recover. Buy the Dips and Time will tell. Now WBA....that's a different story altogether.. Thanks as always for the lightning quick analysis ⚡⚡

[@idonttext9783]

they will buy back shares soon with 6 bill in cash is my guess

[@tradingfundamentals]

So much cash on hand! Last I saw it they had 11.6 billion in cash and short term investments.

[@simonmccullagh278]

There’s a boycott on Nike with there links to Isreal

[@michaeldawn442]

DividendTalks: Can you do a video on Pfizer (PFE)? Also, can you tell us the tool or website you use leading up to your intrinsic stock analysis? The one where you look at Dividend Safety, FCF, ROI, etc. I'm not referring to Seeking Alpha. Finally: Just keep those great videos coming!

[@DividendTalks]

The website is Simply Safe Dividends, and thank you for your kind words 😊 Noted, will add PFE to the list!

[@MrSpandya22]

NKE at $75 as I type this.

[@sfm9]

I bought some NKE shares today. Your video is on target - thank you.

[@DividendTalks]

Glad it was helpful! 😊

[@Intheknow-z7j]

bought too soon. going down further

[@MohammadEkal-u2u]

They did on purpose to drop the shares fot sure im day traders ive seen many earnings report they do on purpose to dropp so market has to do some retecment so since 2001 only up nah this is not market how it works

[@MohammadEkal-u2u]

Im one if the best trader if u say so .tesla also dropped they have to test 140 so earning report was down as well nivivda up america playing with market and news as well coming so we are not stupid i challange the best traders on youtube

[@user-el2qs3ls6m]

What? Speak English

[@user-el2qs3ls6m]

@@MohammadEkal-u2u what is your appointment? What is your point have a point when you put a comment

[@Al4n._]

How do you see Sbux is time to sell or not?

[@dotagedrain7051]

... brutal.. nike... catch falling knife?

[@AyjayAlleyway]

I am

[@ledoug6014]

What do you think is pulling it down?

[@cwilson6880]

Yes, & I'll buy more if it falls more.

[@matthewhicks9726]

First

[@DividendTalks]

Thank you Matthew! Appreciate your support 😊

[@matthewhicks9726]

Just bought 1700 dollars worth of Will but more in 2weeks if price is still under 80 to average down my 90 cost basis

[@geofflovelace8674]

Bought 2 shares below $77 and will keep DCA under $80 to build up a small 2-2.5% position - bring on the Olympics!