Nike: Q2 Sell-Off - Another Leg Down Ahead, Or Is The Bottom Finally In Sight?

Ragmar Rikberg374 FollowersFollow5ShareSavePlay(11min)CommentsSummaryNike, Inc. is rated Hold as its turnaround remains incomplete, with further patience warranted before initiating a position.Key challenges include persistent China sales declines, tariff headwinds, and a business model shift impacting margins and growth.NKE Q2 earnings beat expectations, but management guides for Q3 revenue decline and margin compression, emphasizing a gradual, regionally varied recovery.A sub-$50 share price could offer an attractive entry, given NKE’s strong brand and high likelihood of long-term recovery with solid execution. coldsnowstorm/iStock Unreleased via Getty Images Intro I’ve been following Nike, Inc. (NKE) as a potential investment for years. Whenever the stock has experienced a larger sell-off—which has been fairly frequent in recent years—I've reviewed the fundamentals to see ifThis article was written byRagmar Rikberg374 FollowersFollowI’ve managed my investments since 1999, gaining perspective across multiple market cycles. With a background in Economics and ongoing CFA certification, my focus is on uncovering mispriced assets that the market has overlooked. I conduct my analyses in a way that allows me to use them myself — not just casually handed-out buy or sell decisions. While I acknowledge that sentiment and technicals matter — and that today’s algorithm-driven investment environment often prioritizes them over fundamentals — I’m still guided by a fundamentals-first approach.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.