Should Investors Buy Nike Stock as its Q3 Earnings Approach?

Core Insights - Nike is set to release its fiscal third quarter results on March 20, which will provide insights into the consumer discretionary sector [1] - The stock is currently 7% above its 52-week low of $68 and significantly below its one-year high of$101, indicating ongoing market challenges [2] - Nike faces increased competition from brands like Adidas, Under Armour, and Lululemon, necessitating innovation in its product line [3] Financial Performance Expectations - Nike's Q3 sales are expected to decline by 10% to $11.12 billion compared to$12.43 billion in the same quarter last year, with Greater China sales projected to drop 13% to $1.81 billion [5] - The company's Q3 EPS is anticipated to fall to$0.28 from $0.98 a year ago, although it has exceeded EPS consensus estimates for six consecutive quarters with an average surprise of 29.82$46.59 billion, with EPS expected to rebound to $2.25 in FY26 [6][8] - The stock currently holds a Zacks Rank 3 (Hold), with future performance dependent on meeting or exceeding Q3 expectations and providing guidance that indicates a return to growth [13][16]