10 Most Oversold S&P 500 Stocks in 2024

3) NIKE, Inc. (NYSE:NKE)

% Decline In 1 Year: ~31%

Number of Hedge Fund Holders: 75

NIKE, Inc. (NYSE:NKE) is engaged in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company’s stock has struggled in the recent past as a result of macro pressures, fluctuating consumer trends, weakness in wholesale order books, and continued softness in digital sales. Amidst such challenges, Aneesha Sherman, an analyst from Bernstein, maintained a “Buy” rating on the company’s stock, maintaining the price target of $102.00. The analyst’s rating is backed by several factors relating to NIKE, Inc. (NYSE:NKE)’s strategic actions and brand positioning. It has made strong progress in clearing outdated inventory, mainly under the new CEO’s leadership.

This inventory management can result in new product launches, improving the brand’s appeal. Jordan and AF1 lines have demonstrated healthy signs, with strong clearance strategies resulting in improved selling prices and improved product turnover. Elsewhere, Piper Sandler confirmed the positive stance on NIKE, Inc. (NYSE:NKE), maintaining an “Overweight” rating and a price target of $90. The firm has maintained confidence in the company’s direction, emphasizing its proactive measures and innovation under Hill’s leadership.

Coho Partners, an investment management company released its Q2 2024 investor letter. Here is what the fund said:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”