Why Nike Stock Was Climbing Today
Key Points
As investors step away from the AI trade, Nike and its peers are becoming appealing targets.
The business is still struggling to grow.
Nike's 4.6% dividend yield may be incentivizing waiting for a turnaround.
- 10 stocks we like better than Nike ›
Shares of Nike (NYSE: NKE) were moving higher today even as there was no company-specific news out of the stock.
Instead, the beaten-down footwear company was gaining as part of a broader market rotation from high-priced tech stocks to value stocks in areas like the consumer discretionary sector.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
As of 12:38 p.m. ET, the stock was up 5.3%. Additionally, peers like Lululemon and Deckers were up 5.1% and 3.9%, respectively. Meanwhile, the Nasdaq Composite was down 0.5%, while the State Street Consumer Discretionary ETF was up 1.3%.
Image source: Nike.
Why the rotation is happening now
There is no simple reason for the investor movement today, but Wall Street tends to have a herd mentality, and when one sentiment catches on, it sometimes spreads.
Tech stocks have been pulling back this week on fears of rising interest rates, circular financing problems, competition from China, and other threats, and investors have been collecting profit and are looking for new places to deploy that cash.
Nike and its peers are one attractive choice, as those three stocks are all down sharply from their peaks. Nike's decline isn't undeserved, as the stock has reported flat or declining revenue growth over the last three years.
Buying the stock at this point requires faith that Nike will eventually get its turnaround right, but if it does, the upside could be considerable. To sweeten the deal, the stock currently pays a dividend yield of 4.6%.
What's next for Nike
Nike is coming off another disappointing earnings report at the beginning of the month, so investors should temper their expectations for a quick turnaround. However, it's still the biggest brand in sports, and it seems like a mistake to bet on its continued decline. The company has seen green shoots in some areas, like running, and CEO Elliott Hill, who took over two years ago, deserves some more time to get the company back on track.
Investors shouldn't overreact to today's bounce, but it's good news that investors finally seem to see the stock as a value play.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,579!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,359,789!*
Now, it’s worth noting Stock Advisor’s total average return is 934% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 15, 2026.
Jeremy Bowman has positions in Lululemon Athletica Inc. and Nike. The Motley Fool has positions in and recommends Deckers Outdoor and Nike. The Motley Fool recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
Recommended Articles
