NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.

Nike, Inc.

Key Points
Tim Cook joined Apple just as it was starting a massive turnaround in the late 1990s.
He sees another major turnaround opportunity for a great American brand, and he recently doubled his position.
The turnaround might take time, but there's significant upside from here if it can succeed.
Tim Cook has consistently demonstrated that he knows how to make smart financial decisions with tremendous upside and limited downside. That was exemplified all the way back in 1998, when he decided to leave a comfortable position at the world's largest PC manufacturer, Compaq, and take a job at a struggling competitor, Apple Computer. He has continued to make smart decisions at Apple (NASDAQ: AAPL), and he has been instrumental in growing the company to become one of the most valuable in the world.
Suffice to say, Cook knows a good turnaround opportunity when he sees one. And that's why he invested $3 million of his personal portfolio in another company with which he has deep ties, doubling his stake in the business. While recent struggles have caused the stock to plummet, the company possesses several key characteristics that Cook may identify with and should support a successful turnaround.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Here's why Cook just doubled down on Nike (NYSE: NKE).
Finding its footing
Former CEO John Donahoe led Nike down the wrong track during his tenure. He exited key wholesale partnerships to focus on direct-to-consumer sales and fell back on key lifestyle franchises instead of investing in commercializing new innovative products. The result was weakening financial performance during his tenure that eventually led to his ouster and former exec Elliott Hill stepping in to replace him, as appointed by the board of directors (of which Cook is a member).
Hill took the reins in late 2024 and started implementing his turnaround plan. The "Win Now" strategy focuses on product innovation, distinctive brand marketing with premier athlete partnerships, increasing wholesale distribution, and reducing inventory levels for undifferentiated products.
The turnaround relies on the company's ability to innovate on athletic wear and leverage its brand equity. Those are two characteristics Cook is deeply familiar with as Apple follows a similar playbook in personal computing.
So far, Hill doesn't have much to show for his efforts. Second-quarter revenue climbed 1% year over year, as weakness in China dragged down results. Sales in Greater China fell 17% and earnings before interest and taxes (EBIT) fell 35% year over year. That's especially discouraging considering China is one of the biggest and fastest growing sportswear markets in the world. During theearnings call Hill noted that there's a lot of work to be done to adapt its approach to the region, but it remains a great opportunity.
Overall, Hill said, "We're in the middle innings of our comeback." While it's faced some setbacks, including costly tariffs imposed in 2025, there's a clear path to return to revenue growth and margin expansion. Hill said it will take some time, but "we see the path back to double-digit EBIT margins."
But many investors are losing confidence. Shares fell 10% after the earnings release as they feared the turnaround was taking longer than anticipated and profitability would remain pressured for longer. That's when Cook saw an opportunity to buy shares, adding 50,000 shares for an average price of $58.97, according to SEC filings. That's a big vote of confidence that the turnaround is taking shape as Hill expects.
The stock might be cheaper than it looks
With its declining profits, Nike stock may not appear to be a great value today based on its near-term prospects. However, if it properly leverages its brand strength to reinvigorate sales through wholesale channels with innovative new products, earnings could quickly surpass previous highs before the end of the decade.
That will come through a combination of modest revenue growth and strong margin expansion. But that will take some time. Fiscal 2026 earnings results will be weighed down by its continued turnaround efforts and tariffs, along with weakness in Greater China. Management warned of continued margin pressure through fiscal 2026.
Over the medium term, however, the company should be able to overcome those challenges and produce positive results on both the top and bottom lines. A return to double-digit EBIT margin would provide around a 50% boost to profitability from the current fiscal year without any revenue growth (based on the minimum definition of "double-digit").
As an insider and a seasoned CEO who has overseen a massive turnaround before, Cook has valuable insights into how well Nike's turnaround is progressing. His investment is a signal that it's going better than others are giving it credit for. And if it's a success, the stock looks like a bargain at the current price, close to where Cook added to his position.
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 $505,641!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,283!*
Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 193% 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.
*Stock Advisor returns as of January 2, 2026.
Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple and Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Apple CEO Tim Cook Just Doubled Down on This Iconic Value Stock in His Personal Portfolio With a Fresh $3 Million Investment

Nike, Inc. (NKE) shares rose 4.1% after CEO Elliott Hill revealed a recent purchase of roughly $1 million in company shares.
Corcept Therapeutics Incorporated (CORT) shares plunged 50.4% after the U.S. Food and Drug Administration declined to approve its hypercortisolism drug relacorilant.
Taiwan Semiconductor Manufacturing Company Limited (TSM) rose 1.4% after NVIDIA Corporation (NVDA) asked the chipmaker to boost H200 production amid strong Chinese demand projected for 2026, as mentioned by Reuters.
Microsoft Corporation (MSFT) shares fell 0.8% as technology stocks lagged the broader market during the session.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NIKE, Inc. (NKE) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Jan 2, 2026

NIKE, Inc.’s NKE shares edged 4.1% higher on the last working day of 2025 after it was reported that its chief executive officer Elliott Hill purchased roughly $1 million worth of company shares in the open market recently. While the broader market traded in subdued, holiday-thinned conditions in the session, the insider buying stood out as a company-specific catalyst, helping Nike outperform parts of the consumer discretionary sector. NKE is part of the Zacks Shoes and Retail Apparel industry, a subset of the broader consumer discretionary sector.
Insider purchases by senior executives are often closely watched on Wall Street because they can signal management’s belief that the stock is undervalued or that the company’s long-term prospects remain intact despite near-term challenges. In Nike’s case, the CEO’s purchase was interpreted as a vote of confidence at a time when the company had been navigating a complex operating environment marked by shifting consumer demand and competitive pressures. The buying helped reassure investors that leadership remains committed to executing its strategy and believes in a recovery in brand momentum, which in turn supported demand for the shares into year-end.
The modest gain on Dec. 31 came against the backdrop of a mixed but evolving year for Nike’s stock in 2025. Over the course of the year, Nike shares experienced periods of volatility as investors weighed slower growth in certain key markets, inventory normalization efforts and changing consumer spending patterns. The company has been working to rebalance its product portfolio, refine its direct-to-consumer approach and reinvigorate innovation across footwear and apparel, all while facing intense competition from both established rivals and newer athletic brands.
At the same time, Nike benefited in 2025 from easing supply chain pressures compared with prior years and a renewed focus on cost discipline. Management’s efforts to streamline operations and sharpen brand storytelling helped stabilize sentiment after earlier weakness, even if growth remained uneven across regions. Investor confidence gradually improved as the year progressed, supported by expectations that product launches tied to major global sporting events and renewed wholesale partnerships could drive better traction going forward.
NKE’s stock price declined 13.5% in 2025 and currently hovers around the $64 mark. It currently has a Zacks Rank #3 (Hold). Adidas AG ADDYY and Birkenstock Holding plc BIRK, both peers from the same industry, lost 18.4% and 28.6%, respectively, in the same period. The industry’s price performance in general has gone down 15.2%. Both ADDYY and BIRK also carry a #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
The CEO’s late-December share purchase reinforced the view that Nike is positioning itself for longer-term improvement. While the stock’s year-end move was relatively small, the signal it sent resonated with investors looking ahead to 2026, adding a constructive note to Nike’s finish to 2025.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Adidas AG (ADDYY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NKE Jumps 4.1% on Dec. 31 After CEO's $1 Million Insider Buy

Key Points
Nike's stock has lost value for four years in a row, putting long-term shareholders in a challenging position.
Is the crash a buying opportunity or a sign to stay far away?
It may be hard to believe it now, but there was a time when Nike (NYSE: NKE) was a Wall Street darling. From its IPO in 1980 to its peak in late 2021, the company created boatloads of investor value by establishing an aspirational sports-adjacent brand while leveraging low-cost production in China and other Asian countries. Expansion into those very same markets promised to deliver sustainable long-term growth.
Over the last four years, Nike's value proposition has steadily eroded. Its direct-to-customer pivot failed, and buyers are losing interest in many of its most important markets.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Let's dig deeper to determine if this crisis is a buying opportunity for new investors -- or a sign to stay far away.
What went wrong for Nike?
Nike's downfall arguably started in the post-COVID-19 pandemic period. The company quickly recovered from the initial dip caused by lockdowns and movement restrictions and overinvested in its direct-to-customer (DTC) online sales channels at the expense of its brick-and-mortar footprint.
The goal was to cut out the middlemen to secure better margins. And management seemed to believe that the artificially inflated stay-at-home economy would become the new normal. They turned out to be wrong.
The DTC strategy ceded shelf space to Nike's rivals, encouraging once-loyal Nike customers to take a chance on something new. The good news is that the situation seems to have stabilized in North America, with footwear sales up roughly 9% year over year to $3.54 billion in the fiscal second quarter. However, the weakness in China is stealing the show.
China: Where Western brands go to fail
One of the weaknesses of shareholder capitalism is that it can encourage corporate leaders to make decisions that boost profits (and the stock price) in the short term, while setting a company up for long-term failure. Nike's destruction of its old brick-and-mortar relationships in favor of higher-margin DTC sales is an excellent example of this. But a more damaging issue could be the company's overreliance on China.
To be fair, Nike has benefited substantially from its relationship with the world's most populous country. To this day, an estimated 18% of its footwear is made in the Asian nation (this number was likely much higher in the past). And the lower-cost manufacturing has helped cut costs and boost its margins as a public company over the last 40 years.
That said, over time, outsourced manufacturing leads to technology transfers and brand erosion. According to ABC, Nike shoes are among the most counterfeited goods in the world. And the quality of replicas had become so good that it is often difficult for professionals to tell the difference, let alone regular consumers. Quality shoe manufacturing techniques and materials have become much more diffuse, and this may have something to do with the expansive supply chains of Nike and other large brands.
Like many other Western brands, Nike is also losing the attention of Chinese consumers, who may naturally balk at the idea of paying a significant markup for a foreign brand made in a low-cost manufacturing center in their own country. Business Insider reports that a trend called "guochao," or patriotism, is sweeping through Chinese Gen Z consumers, who now gravitate toward home-grown brands like Anta and Li-Ning.
Nike's footwear sales in China dropped 20% in the fiscal second quarter -- capping off a jaw-dropping six consecutive quarters of decline in this once-crucial region. While management promises a turnaround, investors should expect the downward trend to continue because the core problems with brand erosion can't be solved in a realistic time frame.
Is Nike stock a buy?
Despite its stock price falling in value for four years in a row, Nike's valuation is still too expensive. With a forward price-to-earnings (P/E) multiple of 38, the stock trades at a substantial premium over the S&P 500 average estimate of 22. And this doesn't make much sense, considering the company's ongoing deterioration in China, which will be a long-term drag on growth for the foreseeable future.
Shares should be strongly avoided, because a turnaround looks unlikely.
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 $505,641!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,283!*
Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 193% 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.
*Stock Advisor returns as of January 2, 2026.
Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 57%, Is Nike Stock a Buy in 2026?

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.74%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.63%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.84%. March E-mini S&P futures (ESH26) fell -0.71%, and March E-mini Nasdaq futures (NQH26) fell -0.89%.
Stock indexes retreated on Wednesday, with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 sliding to 1.5-week lows. The weakness in chip stocks and data storage companies led the broader market lower on the last trading day of the year. Also, mining stocks slid on Wednesday, with gold prices falling to a 2.5-week low and silver prices plunging more than -9%. In addition, higher bond yields are negative for stocks, as the 10-year T-note yield climbed +4 bp to 4.16% after weekly jobless claims unexpectedly fell to a 1-month low, a hawkish factor for Fed policy.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Trading activity was subdued on Wednesday, with volumes well below normal, as markets in Germany and Japan were closed for the New Year's holiday.
US weekly initial unemployment claims unexpectedly fell -16,000 to a 1-month low of 199,000, showing a stronger labor market than expectations of an increase to 218,000.
Wednesday's better-than-expected Chinese economic news is supportive of global growth prospects. The China Dec manufacturing PMI rose +0.9 to 50.1, stronger than expectations of no change at 49.2 and the fastest pace of expansion in 9 months. Also, the Dec non-manufacturing PMI rose +0.7 to 50.2, stronger than expectations of 49.6.
Seasonal factors are bullish for stocks. According to data from Citadel Securities, since 1928, the S&P 500 has risen 75% of the time in the last two weeks of December, climbing 1.3% on average.
Market attention this holiday-shortened week will focus on US economic news. On Friday, the Dec S&P manufacturing PMI is expected to remain unrevised at 51.8.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC's next meeting on January 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.08%. China's Shanghai Composite closed up +0.09%. Japan's Nikkei Stock 225 is closed for a bank holiday.
Interest Rates
March 10-year T-notes (ZNH6) on Wednesday closed down -6.5 ticks. The 10-year T-note yield rose +3.3 bp to 4.155%. Mar T-notes gave up an early advance on Wednesday and turned lower after US weekly jobless claims unexpectedly fell to a 1-month low, a sign of labor market strength that is hawkish for Fed policy. The weakness in stocks on Wednesday boosted some safe-haven demand for government debt and limited losses in T-notes.
European government bond yields moved lower on Wednesday. The 10-year German bund yield is not trading today, with German markets closed for the New Year's holiday. The 10-year UK gilt yield fell -1.9 bp to 4.479%.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and data storage companies were under pressure on Wednesday, leading the overall market lower. Micron Technology (MU), KLA Corp (KLAC), and Western Digital (WDC) closed down more than -2%. Also, Marvell Technology (MRVL), Seagate Technology Holdings (STX), Lam Research (LRCX), Microchip Technology (MCHP), Applied Materials (AMAT), Qualcomm (QCOM), and ARM Holdings Plc (ARM) closed down more than -1%.
The Magnificent Seven stocks settled lower, weighing on the broader market. Tesla (TSLA) closed down -1.04%, Meta Platforms (META) closed down -0.88%, Microsoft (MSFT) closed down -0.79%, Amazon.com (AMZN) closed down -0.74%, Nvidia (NVDA) closed down -0.55%, (AAPL) closed down -0.38%, and Alphabet (GOOGL) closed down -0.27%.
Mining companies retreated on Wednesday after gold prices fell to a 2.5-week low and silver prices plunged more than -9%. Newmont (NEM), Barrick Mining (B), Freeport-McMoRan (FCX), Coeur Mining (CDE), and Hecla Mining (HL) closed down more than -1%.
Corcept Therapeutics (CORT) closed down by more than -49% after the FDA rejected the company's relacorliant drug as a treatment for patients with hypertension secondary to hypercortisolism, saying it could not reach a favorable benefit-risk assessment without additional effectiveness data.
GlobalFoundries (GFS) closed down more than -3% after Wedbush downgraded the stock to neutral from outperform.
Vanda Pharmaceuticals (VNDA) closed up more than +25% after the FDA approved the company's Nereus drug for the prevention of vomiting induced by motion.
Nike (NKE) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials on signs of insider buying after an SEC filing showed CEO Hill purchased about $1 million worth of shares on Monday.
Terawulf Inc (WULF) closed up more than +3% after Keefe, Bruyette & Woods upgraded the stock to outperform from market perform with a price target of $24.
Earnings Reports(1/2/2026)
Lifecore Biomedical (LFCR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower on Tech Weakness and Higher Bond Yields

Athletic footwear and apparel giant, Nike (NYSE:NKE), closed Wednesday at $63.71, up 4.12%. Trading volume reached 33.1 million shares, coming in about 88% above its three-month average of 17.6 million shares.
Wednesday’s move followed reports of sizable insider buying by top executives and directors. Investors will be watching whether these purchases signal confidence in Nike’s turnaround efforts. Nike IPO'd in 1980 and has grown 35,355% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 0.74% to 6,846, while the Nasdaq Composite (NASDAQINDEX:^IXIC) lost 0.76% to finish at 23,242. Within the athletic footwear and apparel industry, peers Adidas (OTC:ADDYY) and Puma (OTC:PUMS.Y) slipped slightly as investors weighed ongoing tariff and demand pressures.
What this means for investors
Today's gains mean Nike ends a difficult year on an upbeat note. Down almost 16% in 2025, Nike's price is up over 11% in the past five days. Reports of major insider buying boosted confidence in the popular running brand.
CEO Elliott Hill upped his stake by more than 7% in a transaction worth over $1 million, according to data from Verity. Apple (NASDAQ:AAPL) CEO Tim Cook who is a member of the Nike board disclosed buying around $3 million shares.
The purchases reflect confidence in Nike's turnaround strategy. The company's sports-first focus is beginning to reinvigorate sales, though it still has a way to go. Analyst sentiment remains mixed, though Guggenheim recently reiterated its Buy rating.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 979%* — a market-crushing outperformance compared to 195% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of December 31, 2025.
Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Apple and Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today, Dec. 31: Nike Jumps on Major Insider Buying

Looking at the sectors faring best as of midday Wednesday, shares of Consumer Products companies are outperforming other sectors, losing just 0.2%. Within that group, Nike (Symbol: NKE) and Clorox Co (Symbol: CLX) are two of the day's stand-outs, showing a gain of 4.3% and 0.9%, respectively. Among consumer products ETFs, one ETF following the sector is the iShares U.S. Consumer Goods ETF (Symbol: IYK), which is down 0.2% on the day, and up 5.24% year-to-date. Nike, meanwhile, is down 13.51% year-to-date, and Clorox Co, is down 34.33% year-to-date. CLX makes up approximately 0.6% of the underlying holdings of IYK.
The next best performing sector is the Healthcare sector, losing just 0.2%. Among large Healthcare stocks, Molina Healthcare Inc (Symbol: MOH) and Centene Corp (Symbol: CNC) are the most notable, showing a gain of 2.1% and 0.6%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is down 0.1% in midday trading, and up 14.88% on a year-to-date basis. Molina Healthcare Inc, meanwhile, is down 40.14% year-to-date, and Centene Corp, is down 31.58% year-to-date. Combined, MOH and CNC make up approximately 0.5% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Wednesday. As you can see, none of the sectors are up on the day, while nine sectors are down.
Technology & Communications
-0.4%
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday Sector Leaders: Consumer Products, Healthcare

Key Points
Weak consumer spending is impacting Home Depot, Procter & Gamble, and Nike.
Artificial intelligence (AI) is challenging Salesforce’s subscription model.
UnitedHealth has faced some challenges lately, but it can overcome them.
While momentum investors look for stocks that are in favor and rising in price, contrarian investors don't mind buying stocks that are falling in price if the fundamentals are sound.
Despite a more than 14% year-to-date gain in the Dow Jones Industrial Average as of market close on Dec. 26, there are five Dow stocks that are down 10% or more in 2025: Home Depot (NYSE: HD), Procter & Gamble (NYSE: PG), Nike (NYSE: NKE), Salesforce (NYSE: CRM), and UnitedHealth Group (NYSE: UNH).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here's why all five stocks could be great buys for value investors in 2026.
1. Home Depot
Home Depot's earnings have been languishing due to a sluggish housing market and consumer spending pressures. Even though the stock market is hovering around all-time highs, consumer sentiment remains low due to factors such as higher living costs, inflation, tariffs, and trade policy.
Home Depot tends to perform better when consumers are feeling optimistic about the economy and can afford to spend on major home improvement projects.
Buying Home Depot stock when it's out of favor could be a great move for patient investors. The company has been investing heavily in long-term growth through acquisitions and new store openings. When the cycle shifts, Home Depot will be ready.
In the meantime, investors can scoop up shares for a reasonable 24.1 times forward earnings estimate and collect passive income from Home Depot's reliable dividend, which yields 2.7% at the time of this writing.
2. Procter & Gamble
Consumers aren't just pulling back on discretionary goods and services like home improvement projects. The consumer staples sector is drastically underperforming the S&P 500 in 2025 -- down 0.4% compared to a 17.8% gain in the index. Even Costco Wholesale, a longtime sector outperformer, is on track to have its worst performance relative to the S&P 500 in decades.
Tariffs are complicating supply chains and putting pressure on margins. If household balance sheets were in better shape, consumer staples companies may have an easier time passing along those costs to customers. But that's far from the case.
Like the broader consumer staples sector, Procter & Gamble's stock price took a hit in 2025. But the household goods and personal products company has done a masterful job maintaining its high margins thanks to its highly diversified product mix, international exposure (which reduces its dependence on North America), elite supply chain, and marketing.
Procter & Gamble continues to grow its earnings, albeit at a slower pace than in previous years. But even mediocre earnings growth is relatively good compared to its peers. P&G also pays an incredibly reliable dividend, with 69 consecutive years of increasing the payout and a 2.9% dividend yield at the time of this writing.
3. Nike
Nike shares got a boost in recent sessions as Nike board member and Apple's CEO, Tim Cook, nearly doubled his stake in Nike. But even with that boost, Nike is on track to lose value for the fourth consecutive year.
Nike has been hit hard by tariffs, which are heavily weighing on its gross margins. However, it has made significant strides in adapting its strategy to better incorporate its wholesale partners while maintaining a substantial direct-to-consumer presence.
Tariffs, a slowdown in China, and consumer spending pressures in North America have certainly been a thorn in Nike's side. But the bigger issue is innovation. Nike isn't as dominant as it used to be. Competition is fierce, and consumer preferences are changing.
Nike is returning to its roots by leaning into what has historically made its brand so effective, which is storytelling. To resonate with consumers, Nike must do more than simply place products on a shelf or have an easy-to-use digital platform. It must create footwear, apparel, and equipment that consumers around the world will choose over similarly priced products. Nike also needs to reduce its product markdowns and discounts to restore its margins.
With so much going wrong at Nike, some investors may prefer to wait for the company to demonstrate more concrete evidence of a turnaround. But for folks who believe in the staying power of the brand, Nike and its 2.7% dividend yield could be worth a closer look in 2026.
4. Salesforce
Former market darling Salesforce has undergone a considerable sell-off, along with its software-as-a-service (SaaS) peers, as investors question the role of software in the age of artificial intelligence (AI). The SaaS model relies on increasing the total number of users and revenue for each. But if AI-powered tools enable users to do more with less, an enterprise may need fewer subscriptions.
Salesforce is undergoing a period of change, but the company isn't crossing its fingers and hoping for a recovery. Salesforce is taking action by deploying data-powered AI agents that act as virtual assistants. Agentic AI speeds up workflows and boosts productivity. But the Agentforce pricing model can be costly because it is partially dependent on add-ons per user.
The good news for Salesforce is that it already has widespread adoption. So if Salesforce can improve its product to keep customers engaged, there's a good chance they would prefer sticking with its customer-relationship management platform rather than switching to an unfamiliar competitor. Salesforce also owns Slack, Tableau, and MuleSoft, positioning it as a leader in enterprise software across the entire value chain.
It's also worth mentioning that while Salesforce's growth has slowed, it is still growing and has high margins. The stock is dirt cheap, trading at just 22.6 times forward earnings. And to top it all off, Salesforce offers investors a modest dividend yield of 0.6%.
All told, Salesforce's risks are likely already priced into its valuation, making Salesforce a great buy for long-term investors.
5. UnitedHealth
The worst-performing Dow stock in 2025 is UnitedHealth, which has lost roughly a third of its value. The health insurance giant underestimated the impact of rising medical costs and the usage of Medicare Advantage plans. It also fell under a Department of Justice criminal investigation.
Similar to Nike, just about everything is going wrong for UnitedHealth all at once. So the simplest reason to be optimistic about the stock for 2026 and beyond is that the worst is likely over. After all, UnitedHealth is an industry leader that is heavily out of favor, but the business model has what it takes to recover.
Its UnitedHealthcare segment collects premiums on health insurance plans from Medicare and Medicaid beneficiaries, employers, and individuals. And its Optum segment offers health services. When UnitedHealth is at the top of its game, these two segments are a well-oiled machine that produces steady cash flow and supports a growing dividend.
UnitedHealth is increasing premiums to adjust for higher costs, which should help its results in the new year. At just 20.3 times forward earnings with a 2.7% dividend yield, UnitedHealth is a top pick for value investors in 2026.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, 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 Home Depot 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 $505,749!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,149,658!*
Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 195% 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.
*Stock Advisor returns as of December 31, 2025.
Daniel Foelber has positions in Nike and Procter & Gamble. The Motley Fool has positions in and recommends Apple, Costco Wholesale, Home Depot, Nike, and Salesforce. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 Dow Jones Stocks Fell Over 10% in 2025. Here's Why They Are All Contrarian Buys for 2026.

The S&P 500 Index ($SPX) (SPY) today is down -0.33%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.34%. March E-mini S&P futures (ESH26) are down -0.35%, and March E-mini Nasdaq futures (NQH26) are down -0.38%.
Stock indexes are moving lower today, with the S&P 500 and Dow Jones Industrial Average sliding to 1-week lows, and the Nasdaq 100 falling to a 1.5-week low. Weakness in chip stocks and data storage companies are leading the broader market lower on the last trading day of the year. Also, mining stocks are sliding today, with gold prices falling to a 2.5-week low and silver prices plunging more than -7%. In addition, higher bond yields are negative for stocks, with the 10-year T-note yield climbing by +2 bp to 4.14% after weekly jobless claims unexpectedly fell to a 1-month low, a hawkish factor for Fed policy.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Trading activity is subdued today, with volumes well below normal, as markets in Germany and Japan are closed for the New Year's holiday.
US weekly initial unemployment claims unexpectedly fell -16,000 to a 1-month low of 199,000, showing a stronger labor market than expectations of an increase to 218,000.
Today's better-than-expected Chinese economic news is supportive of global growth prospects. The China Dec manufacturing PMI rose +0.9 to 50.1, stronger than expectations of no change at 49.2 and the fastest pace of expansion in 9 months. Also, the Dec non-manufacturing PMI rose +0.7 to 50.2, stronger than expectations of 49.6.
Seasonal factors are bullish for stocks. According to data from Citadel Securities, since 1928, the S&P 500 has risen 75% of the time in the last two weeks of December, climbing 1.3% on average.
Market attention this holiday-shortened week will focus on US economic news. On Friday, the Dec S&P manufacturing PMI is expected to remain unrevised at 51.8.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC's next meeting on January 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.08%. China's Shanghai Composite closed up +0.09%. Japan's Nikkei Stock 225 is closed for a bank holiday.
Interest Rates
March 10-year T-notes (ZNH6) today are down -4 ticks. The 10-year T-note yield is up +1.6 bp to 4.138%. Mar T-notes gave up an early advance today and turned lower after US weekly jobless claims unexpectedly fell to a 1-month low, a sign of labor market strength that is hawkish for Fed policy. The weakness in stocks today is boosting some safe-haven demand for government debt and limiting losses in T-notes.
European government bond yields are moving lower today. The 10-year German bund yield is not trading today, with German markets closed for the New Year's holiday. The 10-year UK gilt yield is down -1.9 bp to 4.479%.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and data storage companies are under pressure today, leading the overall market lower. Micron Technology (MU) is down more than -1% to lead losers in the Nasdaq 100. Also, KLA Corp (KLAC), Western Digital (WDC), Marvell Technology (MRVL), Qualcomm (QCOM), and Broadcom (AVGO) are down more than -1%.
Mining companies are sliding today, with gold prices falling to a 2.5-week low and silver prices plunging more than -7%. Newmont (NEM) and Barrick Mining (B) are down more than -1%. Also, Freeport-McMoRan (FCX) is down -0.69%, and Hecla Mining (HL) is down -0.46%.
Corcept Therapeutics (CORT) is down more than -51% after the FDA rejected the company's relacorliant drug as a treatment for patients with hypertension secondary to hypercortisolism, saying it could not arrive at a favorable benefit-risk assessment without additional effectiveness evidence.
GlobalFoundries (GFS) is down more than -2% after Wedbush downgraded the stock to neutral from outperform.
Vanda Pharmaceuticals (VNDA) is up more than +31% after the FDA approved the company's Nereus drug for the prevention of vomiting induced by motion.
Terawulf Inc (WULF) is up more than +5% after Keefe, Bruyette & Woods upgraded the stock to outperform from market perform with a price target of $24.
Nike (NKE) is up more than +2% to lead gainers in the Dow Jones Industrials on signs of insider buying after an SEC filing showed CEO Hill purchased about $1 million worth of shares on Monday.
Nvidia (NVDA) is up +0.43% to lead gainers in the Nasdaq 100 after Reuters reported that the company approached TSMC to ramp up production of its H200 artificial intelligence chips amid signs of stronger demand from China.
Earnings Reports(12/31/2025)
CoastalSouth Bancshares Inc (COSO), Golden Matrix Group Inc (GMGI), Immersion Corp (IMMR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Decline as Chip Makers and Data Storage Companies Fall

The S&P 500 Index ($SPX) (SPY) today is down -0.15%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.18%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.19%. March E-mini S&P futures (ESH26) are down -0.17%, and March E-mini Nasdaq futures (NQH26) are down -0.22%.
Stock indexes are under pressure today, with the Dow Jones Industrials sliding to a 1-week low and the Nasdaq 100 falling to a 1.5-week low. The weakness in the Magnificent Seven technology stocks is leading the broader market lower on the last trading day of the year. Also, mining stocks are sliding today, with gold prices falling to a 2.5-week low and silver prices plunging more than -8%. In addition, higher bond yields are negative for stocks, with the 10-year T-note yield climbing by +3 bp to 4.15% after weekly jobless claims unexpectedly fell to a 1-month low, a hawkish factor for Fed policy.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Trading activity is subdued today, with volumes well below normal, as markets in Germany and Japan are closed for the New Year's holiday.
US weekly initial unemployment claims unexpectedly fell -16,000 to a 1-month low of 199,000, showing a stronger labor market than expectations of an increase to 218,000.
Today's better-than-expected Chinese economic news is supportive of global growth prospects. The China Dec manufacturing PMI rose +0.9 to 50.1, stronger than expectations of no change at 49.2 and the fastest pace of expansion in 9 months. Also, the Dec non-manufacturing PMI rose +0.7 to 50.2, stronger than expectations of 49.6.
Seasonal factors are bullish for stocks. According to data from Citadel Securities, since 1928, the S&P 500 has risen 75% of the time in the last two weeks of December, climbing 1.3% on average.
Market attention this holiday-shortened week will focus on US economic news. On Friday, the Dec S&P manufacturing PMI is expected to remain unrevised at 51.8.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC's next meeting on January 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.08%. China's Shanghai Composite closed up +0.09%. Japan's Nikkei Stock 225 is closed for a bank holiday.
Interest Rates
March 10-year T-notes (ZNH6) today are down -6 ticks. The 10-year T-note yield is up +2.6 bp to 4.147%. Mar T-notes gave up an early advance today and turned lower after US weekly jobless claims unexpectedly fell to a 1-month low, a sign of labor market strength that is hawkish for Fed policy. The weakness in stocks today is boosting some safe-haven demand for government debt and limiting losses in T-notes.
European government bond yields are moving lower today. The 10-year German bund yield is not trading today, with German markets closed for the New Year's holiday. The 10-year UK gilt yield is down -1.9 bp to 4.479%.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
The Magnificent Seven stocks are moving lower today, pressuring the broader market. Meta Platforms (META) is down -0.64%, Microsoft (MSFT) is down -0.31%, Amazon.com (AMZN) is down -0.29%, Apple (AAPL) is down -0.24%, Alphabet (GOOGL) is down -0.20%, and Tesla (TSLA) is down -0.04%. Bucking the trend, Nvidia (NVDA) is up +0.35% to lead gainers in the Nasdaq 100 after Reuters reported that the company approached TSMC to ramp up production of its H200 artificial intelligence chips due to signs of stronger demand from China.
Mining companies are sliding today, with gold prices falling to a 2.5-week low and silver prices plunging more than -8%. Newmont (NEM), Hecla Mining (HL), and Coeur Mining (CDE) are down more than -1%. Also, Freeport-McMoRan (FCX) is down -0.66%.
Corcept Therapeutics (CORT) is down more than -46% after the FDA rejected the company's relacorliant drug as a treatment for patients with hypertension secondary to hypercortisolism, saying it could not arrive at a favorable benefit-risk assessment without additional effectiveness evidence.
GlobalFoundries (GFS) is down more than -2% after Wedbush downgraded the stock to neutral from outperform.
Vanda Pharmaceuticals (VNDA) is up more than +24% after the FDA approved the company's Nereus drug for the prevention of vomiting induced by motion.
Terawulf Inc (WULF) is up more than +5% after Keefe, Bruyette & Woods upgraded the stock to outperform from market perform with a price target of $24.
Nike (NKE) is up more than +2% to lead gainers in the Dow Jones Industrials on signs of insider buying after an SEC filing showed CEO Hill purchased about $1 million worth of shares on Monday.
Earnings Reports(12/31/2025)
CoastalSouth Bancshares Inc (COSO), Golden Matrix Group Inc (GMGI), Immersion Corp (IMMR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.