Nike ($NKE): Just Bought the Dip (and New Shoes)!

Nike stock is at its lowest price in 5 YEARS. This could be the best sale since the clearance rack at the Nike outlet!

Nike NKE stock is now at a 5 year low, and I don't see it going much lower from here. Here are some important facts about Nike:

• Stock is at a 5-year low despite sales increasing from $37 billion to $51 billion and income doubled.
  
• Down 63% from all-time high, despite good fundamentals.
  
• P/E ratio is at 22. The lowest since 2018.
  
• Forward P/E is at 33, which = growth expectations.
  
• Price to sales is at 2.2
  
• The price to book is at 7.6, the lowest since 2017.
  
• EV/Sales is at 2. The lowest since 2017.
  
• Technical indicators are signaling oversold and the price is at a support level.
  

All in all, it tells me that Nike is now the cheapest it has been in almost 8 years.

Nike risks and issues:

• Inventory is high worldwide, and inventory movement has been slowing down.
  
• Although high, inventory is lower than in 2022 and 2023.
  
• Consumption might still suffer this year in the US due to austerity.
  
• It seems that many analysts don't like the stock because sales (although growing) are growing less than expected, the business in China is slower than expected, and there is a high inventory.
  

Despite the issues above, what I see is an iconic brand selling at a 50% discount. Sales are up, income is up, ratios are looking good, and the company continues to be a great business, but the stock is selling at a discount. Nike will definitely not go out of business.

This is a good example of buying value at a good price!
Nike is already part of my portfolio (it has been since the Covid crash), but I'm now adding more.
If I were to start investing now, I would start with a little DCA.
Similarly to all my stock investments, I see Nike as a long term holding.

But honestly, I see Nike as an iconic brand on a 50% OFF clearance sale—too good to resist.
I went straight to the Nike store and bought two pairs of sneakers to help flush out that excess inventory. As a proud shareholder, I'm confident I'll see at least $0.01 back in dividends from my shopping spree! 😅👟

Quick reminder: This is my investing journey, not financial advice! 😊