Nike has become the worst-performing stock in the 30-member Dow Jones Industrial Average in 2026, closing Friday at $38.40 and down roughly 40% for the year. The decline exceeds losses of about 21% for IBM and nearly 16% for McDonald’s, while Nike’s market capitalization has fallen to $56.97 billion from roughly $264 billion at the end of 2021. Wall Street has not fully abandoned the stock: the average 12-month price target is about $50.46, implying approximately 31% upside, although the consensus rating remains Neutral. The valuation has also compressed, with Nike trading at roughly 18 times trailing earnings versus about 31 times in fiscal 2022. Its price-to-sales ratio has dropped from 4.0 to approximately 1.2. Analysts are nevertheless questioning whether earnings estimates have been reduced sufficiently. JPMorgan downgraded Nike to Underweight in August and cut its price target to $40, warning that CEO Elliott Hill’s Win Now turnaround could pressure profits through fiscal 2028. The bank expects a Greater China reset to create more than $1 billion in annual revenue pressure. Truist also downgraded the stock, lowering its target to $42 after weaker footwear trends at Dick’s Sporting Goods raised doubts about the pace of Nike’s recovery. S&P Dow Jones Indices will remove Nike from the S&P 100 on Sept. 21, replacing it with technology companies including Dell, Palo Alto Networks, Arista Networks and SanDisk. The stock is roughly 78% below its November 2021 record high. Nike’s operating performance has been more mixed than the share-price decline: fiscal 2026 revenue was $46.4 billion, flat year over year on a reported basis, with wholesale revenue up 6%, Nike Direct revenue down 6% and digital sales down 12%. The figures reflect Hill’s effort to repair retailer relationships after Nike’s aggressive direct-to-consumer strategy. The wider sportswear sector is also under pressure, with Lululemon down about 52% this year as declining leggings sales and lost market share extend the weakness beyond Nike. Nike enters the current period with the worst performance in the Dow, a sharply reduced valuation and analysts continuing to lower forecasts.