Is The Nike Bull Run Over?

The S&P 500 has climbed to new all-time highs this summer, but one of the hottest stocks in the world has not been in on the fun. After skyrocketing more than 500% in the 10 years prior to 2016, Nike Inc(NYSE:NKE) is down 9.6% this year.

Clearly the momentum stock seems to have lost its mojo in the short term. But is NKE stock’s 2016 swoon a buying opportunity or a sign that the bull run is over?

NKE Stock Appears Fully Valued

Even after its 10% pullback, NKE stock’s traditional valuation metrics all indicate that the stock isn’t particularly cheap or expensive. Nike currently trades at a price-to-earnings ratio of 26.1 and a forward PE of 20.5.

A large part of the stock’s meteoric rise in the past decade has been due to its incredible growth. Yet when growth is factored in, Nike stock’s PEG ratio is still a relatively high 1.68.

Nike stock’s forward P/E of 20.5 is much more reasonable than its peak at around 30 back in late 2015, but it’s far from the low end of the stock’s range since 2010.

NKE Stock Hits a Bump in the Road

In the most recent quarter, Nike delivered…

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