Nike's 13-Year Dow Stint Hangs in the Balance Amid Declining Market Value

Nike's (NKE) 13-year run in the Dow Jones Industrial Average may be coming to an end, according to Wall Street analysts. The sneaker giant's stock has declined by 77% over the last five years and is now the smallest stock in the price-weighted Dow index, making it vulnerable to removal.

The current market value of Nike's shares has fallen by 80% since its peak, which has led to concerns about its inclusion in the Dow. Analysts point out that Nike's revenue has not kept pace with other companies in the Dow, and its share price of $36 makes it a candidate for removal.

Josh Bischoff, head trader at TimesSquare Capital Management, said 'Just looking at it historically, it probably is a candidate for removal.' Shay Boloor of Futurum Equities added that 'I would describe the odds of Nike's removal as much higher over the next year, but it's tricky because the Dow doesn't have a mechanical deletion rule where Nike automatically falls out after crossing some threshold.'

Nike's stock has a consensus Hold rating among 25 Wall Street analysts, with an average price target of $50.05 implying 30% upside from current levels.