Is Now the Time To Buy Nike? — Bargain or Value Trap? – 10/07/26

Nike was once trading above $150. Today, it's around $34.

So here's the obvious question:

Has one of the world's most recognizable brands finally become a bargain—or is there a reason the stock has fallen this far?

On today's TraderMerlin, we're putting the charts aside for a moment and digging into Nike from a fundamental perspective.

Revenue. Earnings. Margins. Cash flow. Debt. Return on invested capital. Valuation. Growth.

We're going to tear apart the numbers and try to answer one simple question:

At what price does Nike become a legitimate value play?

Because a stock falling 50%, 60% or even 70% doesn't automatically make it cheap.

Price and value are two very different things.

Nike's latest earnings illustrate that perfectly.

The company generated $11.2 billion in quarterly revenue and remained solidly profitable. Gross margin actually improved to 42.8%, and management continues working through its turnaround strategy.

But underneath those numbers are some serious problems.