Nike (NKE) shares have been under immense pressure in recent sessions, mostly due to the firm’s disappointing sales forecast, citing ongoing disruptions in the Middle East and a continued slump in China.
The bearish momentum has crashed NKE’s relative strength index (14-day) into the late teens, signaling extremely oversold conditions that often trigger a relief rally.
Nike stock has been a major disappointment for investors since the COVID-19 pandemic. At writing, it’s down an alarming 76% versus its high in late 2021.
Where Options Data Suggests Nike Stock Is Headed
Despite Nike’s concerning guidance, options pricing suggests a significant rebound is in the offing.
According to Barchart, the put-to-call ratio on contracts expiring mid-July sits at 0.59x currently — signaling a strong bullish skew, with the upper price on those contracts calling for a push to $49.
This means options traders expect NKE shares to rally over 15% within the next three months.
It's also worth mentioning that Nike currently pays a lucrative dividend yield of 3.84%, which makes it even more attractive as a long-term holding — at least for income-focused investors.
Guggenheim Remains Constructive on NKE Shares
Guggenheim’s senior analyst Simeon Siegel also remains bullish on Nike shares for the remainder of 2026.
Speaking recently with CNBC, Siegel argued the company’s latest earnings release actually offered evidence that it’s moving in the right direction.
The market expert cited management’s aggressive “marketplace clean-up” and “Sports Offense” strategy in North America as critical “greenshoots.”
According to Siegel, while international regions like China remain a drag, Nike is successfully right-sizing its inventory and protecting its premium brand equity.
These initiatives, he’s convinced, are necessary precursors to a sustainable long-term recovery.
How Wall Street Recommends Playing Nike Inc
Other Wall Street analysts also remain constructive on NKE stock, especially since it’s trading at a historically low valuation multiple of about 29x earnings at the time of writing.
According to Barchart, the consensus rating on Nike is a “Moderate Buy,” with the mean price objective of roughly $64, indicating analysts currently see the footwear giant as significantly undervalued.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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