Nike’s Turnaround Gets Fresh Vote Of Confidence From Dick’s: Is NKE Stock A Buy-The-Dip Opportunity?

• Jefferies sees Nike’s recent stock weakness as a potential buying opportunity.
• The firm cited strong demand for Nike's running products at Dick’s Sporting Goods, despite ongoing inventory clearances and promotional pressure.
• RBC kept its Sector Perform rating and $45 price target on Nike, implying a 14% upside potential. 

Nike Inc. (NKE) stock ticked higher overnight as Dick’s Sporting Goods’ (DKS) reset offered fresh support for the brand, while analysts see recent weakness as a potential buying opportunity rather than a broken turnaround thesis.

Nike Gets A Lift From Dick’s Sporting Goods Reset

Jefferies highlighted comments from Dick’s Sporting Goods executive chairman Ed Stack from the company’s fiscal second-quarter (Q2) 2027 earnings call, who identified Nike, Adidas, On and HOKA among brands undergoing changes at the retailer. Stack later pointed to Nike and Adidas’ women’s prints and patterns, along with UGG and Birkenstock, as products performing well.

"There are some things out there in the marketplace that are working extremely well, whether it's from the Nike Mind shoe, the Nike running construct is great,” said Stack.

Jefferies noted that Nike has substantial exposure to older product lines being cleared out, meaning the brand could still face heavier promotions during the holiday period. However, Dick’s indicated that Nike merchandise is helping move the broader athletic business forward.

“Nike changed the running silhouette. They really redefined this whole category of business. They've done extremely well with the Vomero and Peg, and those 2, in particular, have done extremely well,” added Stack.  

Jefferies believes the recent weakness in Nike stock may pose an opportunity rather than evidence that its investment view has fundamentally changed. Nike stock inched 0.3% higher overnight, ahead of Wednesday. 

Since its November 2021 record high, Nike has lost more than 60% of its market value, largely because of strategic mistakes that hurt its competitive position.  Under CEO Elliott Hill, Nike is now rebuilding relationships with retail partners and increasing its focus on performance footwear.  

RBC Takes A Measured View On Nike 

RBC Capital also remained constructive but cautious following meetings with Nike CEO Elliott Hill. The firm retained its ‘Sector Perform’ rating and $45 price target, still implying a 14% upside to the stock’s last closing price. 

RBC said Nike has begun making appropriate changes, but the turnaround is progressing more slowly than executives had hoped. The company continues to operate in a complicated consumer environment, making execution critical as it works to restore momentum, the firm said. 

NKE Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory. 

A user said, “Literally every single time the monthly RSI has gotten this low in the 45 years that Nike has been publicly traded, it has bounced at least 28% from lows within 12 months. Most of the time the bounce has been closer to 50%.”

NKE stock has cratered 38% so far this year. 

Also See: Monster Run: This Consumer Stock Turned $1,000 Into $1M Over 22 Years

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