Nike, Inc. was incorporated in 1967 under the laws of the State of Oregon. The company's principal business activities are the design, development, and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories, and services. The company is the world's largest seller of athletic footwear and athletic apparel. The company sells its products to retail customers through Nike-owned retail stores and Internet websites, as well as through independent distributors and licensees worldwide. Virtually all of the company's products are manufactured by independent contractors. Almost all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.
NKE is in a pronounced primary downtrend with nascent signs of short-term stabilization, but the weight of technical evidence argues against new buys due to bearish momentum, overhead resistance, and a critically low Money Flow Index.
Nike appears overvalued with a P/E ratio near 30 despite declining earnings, suggesting the market is pricing based on brand strength rather than current fundamentals. A more reasonable P/E range of 22-25 implies a fundamental price range of $33.66 to $38.25, significantly below the current price of $46.03.
