(NYSE: NKE) was among the worst performers on the Dow Jones Industrial Average in 2023. Shares of the footwear and sports apparel giant declined 8% while the wider market jumped 14%. Missing that rally added to a tough period for Nike's stock, which has underperformed the market over the past five years.

Will 2024 be much better? Nike is entering the year with a rock-bottom stock valuation, after all. There are a few encouraging operating trends lifting the business, too, including slim inventory holdings and a rising profit margin. Let's look at whether these factors will make for a much stronger year ahead for investors.

Wall Street was disappointed with Nike's most recent earnings update, which arrived in the middle of the critical holiday shopping season. The company said on Dec. 21 that global sales fell 1% through late November and were up just 1% in the past six months.

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Source Fool.com