Since forming a "death cross" in February — when the 50-day moving average crossed below the downward sloping 200-day moving average — Nike has underperformed the consumer discretionary sector and the S & P 500. Nike, which reports earnings after the bell Thursday, is trading at less than 24 times forward earnings. That's well below the longer-term average of about 29 times forward earnings. On Wednesday, Nike traded more than two times its average daily options volume.
data is not even that optimistic, expecting a negligible 0.2% increase from the prior year to $12.85 billion Even my family has contributed to to one of the reasons the company is trading at a discount to its historical valuation: loss of market share. According to YipitData, which tracks sales data noted that at Dick's Sporting Goods, On Holding brand market share grew to 12% and Hoka to 13% as of May, while Nike's slid by 7 percentage points from 39% to 32%.
Click here for the full disclaimer.