Forget 2025: This Dividend-Paying Value Stock Is Too Cheap to Ignore in 2026

Company Overview - Nike's stock fell 10.5% following its earnings report, with a 57% decline over the past five years compared to an 84% gain in the S&P 500, indicating a significant underperformance [3] - The company's quarterly results showed a 1% increase in total revenue, driven by an 8% increase in wholesale revenue, but offset by an 8% decrease in Nike Direct revenue [5] Direct-to-Consumer (DTC) Challenges - Nike's DTC channels, which include Nike Digital and Nike-owned stores, are facing challenges as they rely heavily on customer loyalty and fresh product cycles [6][7] - The wholesale sales model is currently performing better than DTC, reducing pressure on Nike as partners assist in sales [7] Market Conditions and Future Outlook - The overall sales at Nike are declining, and profit margins are eroding, with weak consumer spending and tariff-related expenses contributing to a slower-than-expected turnaround [8][9] - North American results show signs of improvement, but disappointing figures from China are a concern, suggesting that shares may remain under pressure until performance aligns with investor expectations [9]