Nike ‘s mission to reclaim its glory in 2026 is clear. But the pathway forward won’t be easy. With earnings out Thursday evening, the famed apparel giant’s “Win Now” initiative under CEO Elliott Hill has certainly been winning over Wall Street analysts. Hill’s strategy includes sports-centered stores and a revival of wholesaler relationships. To keep investors in its corner, Nike still has to show and prove it, with continued signs of progress. A little more than two-thirds of analysts covering Nike have buy-equivalent ratings on the stock. During Wednesday’s Morning Meeting for Club members, Jim Cramer said, “Hill is doing what’s necessary. Nike is a little like Starbucks ; we don’t know when they’re going to turn. But they are going to turn.” With Hill just over a year into his tenure, Jim has repeatedly said it is too soon to expect a fix. “[Nike] has to start innovating, and I think they will. And, they gotta get rid of the inventory. I think they will,” Jim predicted. For those reasons, Jim said he wants investors who don’t own Nike to buy a small position, arguing that Nike may have “lost their touch” but thinks the iconic brand can make a comeback. Nike was one of five big-bounce stocks for 2026 that we highlighted earlier this month. Nike at a glance Year-to-date performance: down 12.2% Forward price-to-earnings multiple: 40 times versus a five-year average of 31.22 Our rating: Buy-equivalent 1 rating Our price target: $80 a share To be sure, Nike’s stock has lagged. The company saw a post-earnings pop of 6.4% on Oct. 1 — the day after fiscal 2026 first quarter results far exceeded expectations, signalling progress in Hill’s turnaround. At the time, we called the guidance for fiscal Q2 better than feared. While shares have given back those earnings gains and then some, Nike has been on a bit of an upswing since last month. Here are three ways Nike can keep its momentum going through Thursday’s earnings and into the new year. 1. Inventory cleanup Cleaning up the inventory is arguably Nike’s biggest hurdle. “For the stock to blast higher,” the company must clear the channel of the old products, and then it needs to be “filled with cool, new inventory,” Jim said during December’s Monthly Meeting . Over the past several years, Nike has been plagued with excess inventory as a consequence of pandemic supply chain disruptions. The company also grappled with the fallout of alienated third-party relationships as it continued to favor a direct-to-consumer pipeline long after Covid under the leadership of former CEO John Donahoe. As of late, Nike said that inventory of its classic footwear, including Air Force 1 and Air Jordan 1, is stabilizing. Dunk shoes, however, have a way to go. Wells Fargo analysts estimated last month that Dunk cleanup will continue at least another year through the company’s fiscal 2027 first quarter. “We believe once the dust settles, Nike will have absorbed a total $6 billion headwind from market cleanup on these…
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