Core Insights - JD Sports' overall sales during the holiday period were in line with expectations despite a volatile consumer environment [1] - The company experienced strong customer engagement on Black Friday, but demand softened in early December, particularly in Europe and the UK [2] Sales Performance - The fourth quarter to-date organic sales grew by 1.4%, while like-for-like sales dipped by 1.8%, consistent with the third quarter performance [2] - In North America, like-for-like sales increased by 5.3% in Q4 to-date, recovering from a decline of 1.7% in the previous quarter [3] - The footwear category in North America showed resilient performance, driven by momentum in running and strong demand for new retro basketball products, although there was softness in end-of-cycle product lines [3] Online Performance - JD Sports reported strong online performance across key banners in North America, supported by improved online ranges, focused marketing, and controlled price investments, particularly on FinishLine.com [4] Market Trends - The company noted a marked improvement in like-for-like sales trends in North America, returning to growth and gaining market share, with plans to increase marketing initiatives in the region to accelerate growth [5] - However, like-for-like sales trends in Europe and the UK were weaker, down 1.1% and 3.3% respectively, impacted by a cautious consumer environment and higher promotions [5]

Core Insights - Nike's stock is poised to potentially join the dividend aristocrats, a group of S&P 500 companies that have increased their dividends annually for at least 25 years, which could enhance its attractiveness to income-seeking investors [1][8] Group 1: Dividend Aristocrats - Currently, there are 69 dividend aristocrats, with Erie Indemnity, Eversource Energy, and FactSet Research System being the newest members [2] - Becoming a dividend aristocrat could improve Nike's stock appeal by enhancing its perceived quality and reliability, attracting exchange-traded funds that track this group [3] Group 2: Market Performance - The dividend aristocrats have underperformed the broader market recently, with a total return of approximately 7% in 2025, compared to the S&P 500's 18% [4] - Despite recent underperformance, dividend aristocrats have shown resilience during market volatility, as evidenced by a smaller decline during the 2008 financial crisis [4] Group 3: Nike's Current Situation - Nike's stock has faced challenges, with a decline of over 9% in the past 12 months and a 50% drop over the last five years, amid higher tariffs and intense competition [5][6] - Analysts from Jefferies recommend aggressive buying of Nike shares, projecting a price target of $110, indicating over 70% upside potential from recent closing prices [7]

Company Overview - Under Armour (UAA) shares increased by 7.5% to close at $5.14, with trading volume significantly higher than usual, compared to a 4.4% gain over the past four weeks [1] - The company is experiencing strong growth in the EMEA and Latin America regions, driven by premium products and disciplined pricing strategies [1] - Brand momentum is particularly strong among younger consumers, and the company maintains a robust balance sheet that supports long-term growth [1] Financial Performance Expectations - Under Armour is projected to report a quarterly loss of $0.02 per share, reflecting a year-over-year decline of 125% [2] - Expected revenues for the upcoming quarter are $1.31 billion, which represents a decrease of 6.6% compared to the same quarter last year [2] - The consensus EPS estimate has been revised down by 38.5% over the last 30 days, indicating a negative trend in earnings estimate revisions that typically does not lead to price appreciation [3] Industry Context - Under Armour is categorized within the Zacks Textile - Apparel industry, which includes other companies such as LuxExperience B.V. - Sponsored ADR (LUXE) [3] - LUXE's consensus EPS estimate has changed by +20% to -$0.12, representing a year-over-year change of -185.7% [4] - LUXE has experienced a return of -8.5% over the past month, and it also holds a Zacks Rank of 3 (Hold) [4]

Core Insights - Nike has experienced significant growth since its IPO in 1980, with sales increasing from less than $2 million in 1972 to $51.2 billion by 2024, showcasing an average annual growth rate of 85% in sales and nearly 100% in net income during its early years [2][6] - Despite recent challenges, including a decline in revenues and gross margins, Nike is focusing on a "Win Now" initiative aimed at strengthening partnerships and driving long-term growth [7][9] Historical Performance - In 1990, Nike became the world's largest sports footwear and apparel company, achieving a profit increase of 45% and annual revenues of $2.23 billion, while holding a 28% market share in the U.S. [4] - By the fourth quarter of fiscal 2014, Nike's operating revenue reached $7.4 billion, surpassing its total revenue from fiscal 2004 [6] Recent Challenges - Nike has faced stagnating sales due to issues such as direct-to-consumer sales strategies, inventory management problems, and lack of product innovation [7] - In the fourth quarter of fiscal 2025, revenues decreased by 12% year over year, and gross margin fell from 44.7% to 40.3% [8] Current Status and Future Outlook - Nike's shares have declined by 19% year to date, contrasting with the S&P 500's 17% rise, but the company has announced its 24th consecutive annual dividend increase, moving towards Dividend Aristocrat status [10] - With dividends reinvested, an initial investment of $100 at Nike's IPO would have grown to approximately $55,077, demonstrating the long-term value of the brand despite recent headwinds [12]

Core Viewpoint - The article discusses three well-known consumer stocks that are struggling and suggests that investors may want to consider divesting from them as they reevaluate their portfolios for 2026. Group 1: Nike - Nike has faced challenges due to changing consumer tastes and macroeconomic conditions, leading to increased competition from brands like Adidas and Under Armour [4][5] - In Q2 of fiscal 2026, Nike's revenue increased by only 1%, following a 10% decline in fiscal 2025, while net income fell 32% to $792 million due to rising expenses [6] - Despite a current price of $60.83 and a market cap of $90 billion, Nike's P/E ratio of 34 indicates it remains relatively expensive, suggesting potential reconsideration for investors [8] Group 2: Starbucks - Starbucks has struggled post-CEO Howard Schultz, facing complaints about high prices, slow service, and poor in-store experiences, which have affected its business and reputation [9][10] - In Q4 of fiscal 2025, revenue grew by 6% year-over-year, but net income plummeted 85% to $133 million due to faster expense growth and one-time restructuring charges [11][12] - With a current price of $85.07 and a market cap of $97 billion, Starbucks has a forward P/E ratio of 37, indicating it trades at a premium despite ongoing struggles [14] Group 3: Kraft Heinz - Kraft Heinz has been criticized for the failure of its merger, with Warren Buffett acknowledging its shortcomings, and the planned split of the company is unlikely to resolve core issues [15][17] - In Q3 of 2025, net sales dropped 3% annually, continuing a trend since 2023, although the company reported earnings of $615 million due to the absence of impairment losses [18] - With a current price of $24.13 and a market cap of $29 billion, Kraft Heinz's P/E ratio of 12 may attract some investors, but ongoing challenges suggest it may be best to avoid this stock [16][19]

Group 1 - NIKE has been a disappointing investment over the past several years due to high inflation impacting consumer spending [1] - The implementation of certain policies by the President has also contributed to the challenges faced by NIKE [1] Group 2 - The article does not provide specific financial data or performance metrics related to NIKE or the broader industry [2][3]

Market Overview - The Dow and S&P 500 indexes advanced 1.3% and 0.2%, respectively, reaching all-time high closings, while the Nasdaq Composite fell 0.3% [1] - Market participants are shifting from technology to rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and health care due to the recent Fed rate cut and high valuations in the tech sector [2] Recommended Stocks - Five non-tech large-cap stocks are recommended, currently trading below their 52-week highs and at attractive valuations: On Holding AG (ONON), Lennar Corp. (LEN), Jefferies Financial Group Inc. (JEF), Omnicom Group Inc. (OMC), and Thomson Reuters Corp. (TRI) [3][9] On Holding AG (ONON) - On Holding specializes in footwear and sports apparel, offering products through various channels [6] - Expected revenue and earnings growth rates for next year are 20.6% and 79.3%, respectively, with a 22% improvement in earnings estimates over the last 30 days [7] Lennar Corp. (LEN) - Engaged in homebuilding and financial services, focusing on tech-enabled manufacturing to enhance efficiency and reduce costs [8] - Expected revenue and earnings growth rates for next year are 1.9% and 11.1%, respectively, with a 0.2% improvement in earnings estimates over the last week [10] Jefferies Financial Group Inc. (JEF) - Gained market share in investment banking without significantly expanding its balance sheet, which is expected to drive top-line growth [11] - Expected revenue and earnings growth rates for next year are 16.5% and 59.5%, respectively, with a 0.8% improvement in earnings estimates over the last week [13] Omnicom Group Inc. (OMC) - Operates a diverse portfolio in traditional and digital marketing, enhancing revenue stability [14] - Expected revenue and earnings growth rates for next year are 3.1% and 8.8%, respectively, with a 2.4% improvement in earnings estimates over the last 30 days [16] Thomson Reuters Corp. (TRI) - A leading provider of information and technology across various sectors, including law, tax, and financial services [17] - Expected revenue and earnings growth rates for next year are 7.6% and 12.4%, respectively, with a 2.1% improvement in earnings estimates over the last 60 days [18]

Market Overview - Pre-market futures are up, indicating a positive market sentiment following a mixed session where the Dow reached a record high while the Nasdaq and S&P 500 experienced pullbacks [1] - Current index performance shows the Dow up +103 points, S&P 500 up +22, Nasdaq up +151, and Russell 2000 up +7 points [1] Economic Indicators - The government shutdown is ongoing, now on Day 43, with a House vote scheduled to discuss re-opening [2] - Upcoming economic reports such as CPI, PPI, Weekly Jobless Claims, and Retail Sales are still possible, which could provide insights into the economy ahead of the holiday shopping season [2] Inflation Insights - Year-over-year Consumer Price Inflation is currently at +3%, up from +2.3% in April, with expectations to reach +3.1% for October [3] - This increase in inflation is significant for the Federal Reserve's considerations regarding future interest-rate cuts [4] Company Earnings Reports - Tencent Music Entertainment Group (TME) reported Q3 earnings of 22 cents per share, beating expectations, with revenues of $1.19 billion, a +20.6% year-over-year increase; however, the stock is down -2% [5] - On Holding (ONON) exceeded earnings expectations with 50 cents per share versus the anticipated 34 cents, and revenues of $992.9 million, leading to a +23% increase in shares [6] - McGraw-Hill (MH) reported an earnings surprise of +300%, with earnings of $1.40 per share compared to the expected $0.35, and revenues of $669.2 million, resulting in a +14% increase in shares [7]

分组1 - Under Armour reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to earnings of $0.3 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $1.33 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.98%, although this is a decrease from year-ago revenues of $1.4 billion [2] - Under Armour has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed, losing about 44.3% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $1.33 billion, and for the current fiscal year, it is $0.06 on revenues of $4.94 billion [7] - The Zacks Industry Rank for Textile - Apparel is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Group 1 - Nike shares fell below their 200-day moving average of $70.10, trading as low as $69.22 per share, representing a decline of approximately 2.6% on the day [1] - The 52-week range for Nike shares is between $52.28 (low) and $90.62 (high), with the last trade recorded at $69.57 [2]