After outperforming the S 500 for most of the last decade, (NYSE: NKE) stock has underperformed over the last three years. The company posted strong revenue growth last year, but it has struggled with too much inventory, relying on discounting to move merchandise.
Investors have been mostly concerned about the company's falling profit margins, as well as the weakness in China, which was a key growth driver of its business before the pandemic.
The stock has rebounded from its 2022 lows but is still 37% off the all-time high reached in 2021. With China reporting robust growth in the last quarter as its economy recovers from COVID-related disruptions, on top of better inventory controls, is it safe to buy Nike stock now?
Source Fool.com