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1 Beaten-Down Value Stock to Buy Now With $100

newsfeedback@fool.com (Adam Levy)
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⚡ Quantum Brief
Nike’s turnaround strategy under CEO Elliott Hill, appointed in 2024, leverages its iconic brand and innovation to revive growth after years of declining profitability under prior leadership. Wholesale revenue rose 8% in the latest quarter, though overall sales remained flat due to tariffs and China’s 17% sales decline, offset by 9% growth in North America and 3% in Europe. China’s long-term potential remains strong, with government-backed sports industry expansion targeting a $1 trillion market by 2030, despite current headwinds from tariffs and weak demand. Analysts project earnings per share to rebound to $2.47 in fiscal 2027 from $1.75, as margins recover from tariff pressures and wholesale partnerships reduce inventory costs. Trading at 25x forward earnings, Nike offers value investors a discounted entry point amid a predicted 2026 shift toward value stocks, with potential for steady margin and revenue growth.
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This company's strong brand and renewed focus should help it turn things around.After years of seeing growth stocks dominate the market, many analysts are predicting a shift toward value stocks in 2026. The best value stock opportunities are typically companies with wide competitive moats that may be facing temporary setbacks. One such opportunity is Nike (NKE +3.17%). The company is currently in the midst of a turnaround effort, and it's seen a sizable impact from the Trump administration's tariff policies over the past year. But patient investors looking for an outstanding value stock to buy with just $100 may have a great one in Nike. Image source: Getty Images. Leaning on its strengths to Win Now Nike's financial results deteriorated under former CEO John Donahue. His focus on direct-to-consumer sales and product segmentation by gender (instead of sport) didn't lead to the increase in profits expected. The board replaced Donahue with veteran executive Elliott Hill in 2024. Hill's Win Now turnaround strategy relies on Nike's strong brand and ability to innovate in athletic wear. Its marketing now leans into those strengths. He's also renewing wholesale agreements to expand sales channels and reinvigorate revenue growth. Wholesale revenue improved 8% in its most recent quarter, but overall sales growth remains sluggish -- flat on a currency-neutral basis. With more sales coming from wholesale channels, along with the weight of tariffs on its cost of goods, gross margin contracted 3 percentage points. But there are bright spots in those results. North America saw revenue grow 9%, and Europe grew 3% before adjusting for foreign-exchange headwinds. Both growth rates are accelerating. ExpandNYSE: NKENikeToday's Change(3.17%) $1.94Current Price$63.04Key Data PointsMarket Cap$93BDay's Range$61.65 - $63.3852wk Range$52.28 - $82.44Volume1MAvg Vol18MGross Margin40.72%Dividend Yield2.55% China remains a big drag on its financial results, with sales in the region down 17% year over year last quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell sharply, down 49%. But China is a big opportunity for Nike in the long run. Not only does it already have strong brand recognition in the region, but the Chinese government is also promoting sports and fitness. Its goal is to expand the sports industry into a $1 trillion market by 2030, nearly doubling from 2023 levels. Nike may continue to struggle through the rest of fiscal 2026, which ends in May. But as it laps the impact of Trump tariffs and the declining profitability in China, Hill's Win Now efforts should start to show progress over the next year. Margins will expand again as wholesale customers reduce the cost of inventory management and help reinvigorate sales growth. It may also be able to offset the impact of tariffs with supply chain shifts and passing through price increases to customers in the U.S. Analysts see a strong rebound in Nike's earnings per share next year, with the average on Wall Street at $2.47 for fiscal 2027, increasing from $1.75 for the fiscal year that ends in May. With the stock price just over $60, the shares trade for about 25 times forward earnings. That might seem expensive for a company that's not growing at a breakneck pace. But Nike could see a substantial revenue rebound over the next few years while steadily expanding margins back to pre-pandemic levels and beyond, producing excellent earnings-per-share growth. At its current price, investors with $100 and who are interested in a value stock might not find many stocks with a better value than Nike shares right now.Read NextFeb 11, 2026 •By Neil PatelIs Nike Stock Going to $100?Feb 9, 2026 •By Jeremy BowmanNike-Owned Converse May Be About to Make Deep Cuts.

Will It Affect Nike's Stock?Jan 29, 2026 •By Neil Patel3 Important Metrics All Nike Stock Investors Need to KnowJan 28, 2026 •By Lawrence Rothman, CFABest Consumer Stock to Buy Right Now: Nike or TJX Companies?​Jan 27, 2026 •By Daniel SparksDown More Than 50% in 3 Years, Is Now Finally the Time to Buy Nike Stock?Jan 26, 2026 •By Jon QuastNike Stock Is Down, but Is It a Buy?About the AuthorAdam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings.

Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.TMFnCaffeineX@admlvyStocks MentionedNikeNYSE: NKE$63.04 (+3.17%) $+1.94*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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