NKE may be ready to jump big timeNike, Inc.BATS:NKEbitdoctorFrom a technical standpoint, it’s important to note that we appear to have completed a multi-year correction, followed by a solid relief rally and a subsequent pullback to the 61.8% Fibonacci retracement level. This is the basis of my technical stance. My fundamental analysis of NIKE, though, reveals a company at a critical inflection point. The analysis indicates significant deterioration that current market pricing fails to adequately reflect. The -43.5% net income decline, -9.8% revenue contraction, and -50.6% free cash flow deterioration paint a concerning picture of operational challenges and margin compression. Despite these headwinds, NIKE continues to trade at premium valuation multiples that appear disconnected from the company's current growth trajectory. The P/E ratio of 27.9x and EV/EBITDA of 20.7x are difficult to justify given the earnings contraction and negative revenue growth. While technical indicators suggest oversold conditions, the broader trend remains downward, reflecting market recognition of these fundamental challenges. The saving grace for NIKE remains its formidable brand equity and global market positioning, which provides some downside protection and potential for recovery if management can successfully navigate the current competitive landscape. However, until clear evidence emerges of successful execution and fundamental improvement, the risk/reward profile remains unfavorable long term. I would recommend a HOLD stance with caution, as current valuation levels appear unsustainable and fail to adequately discount the operational headwinds facing the company. Current Price: $62 Price Target: $96 Invalidation: $55