Nike Dropped from S&P 100 Index on September 21

Nike (NKE) is set to be removed from the S&P 100 index on September 21, after nearly 18 years of inclusion. The sportswear manufacturer will be replaced by Palo Alto Networks (PANW). Despite being dropped from the S&P 100, Nike will remain in the wider S&P 500 Index.

Nike's stock has declined significantly over the past year due to poor digital performance and issues in China. The company's market value has decreased by approximately half, with the stock trading at around $37, down from its 52-week high of $76.97. The decline in value has led to a reduced share price, but the stock is not necessarily cheap.

The forward P/E ratio of Nike stands at about 22x, which requires investors to pay a premium for the company's recovery. However, the execution now matters more than ever, as the company faces challenges in its wholesale channel and digital weakness. The annualized dividend of $1.64 per share corresponds to a forward yield of around 4.3%.