Nike Becomes Dow's Worst Stock as Market Value Plummets 40%
Nike has officially become the worst-performing stock in the Dow Jones Industrial Average this year. Its market value plummeted to $56.97 billion, down from approximately $264 billion at the end of 2021.
The company's stock closed at $38.40 on Friday, marking a roughly 40% decline in 2026. This makes Nike the worst-performing stock in the Dow, surpassing IBM's -21% and McDonald's near -16% drops.
Despite this significant decline, Wall Street still sees upside potential for the company. The average 12-month analyst price target sits at $50.46, indicating a possible 31% increase from its current price. However, analysts have lowered their forecasts due to concerns about Nike's financial performance.
Nike's valuation has compressed dramatically, with its stock trading at approximately 18 times trailing earnings compared to around 31 times in fiscal 2022. Its price-to-sales ratio has fallen from 4.0 to about 1.2 over the same period.
Analysts are questioning whether earnings estimates have fallen far enough, and some have downgraded their predictions for the company's future performance. JPMorgan downgraded Nike to Underweight in August and cut its price target to $40, warning that the financial impact of CEO Elliott Hill's 'Win Now' turnaround could weigh on profits through fiscal 2028.