Nike Faces Dow Jones Exit and Analyst Downgrades Amid Weak Turnaround Momentum

Nike Inc (NKE) is seeing two significant developments this week that underscore mounting investor concerns about its turnaround strategy. The company’s removal from the S&P 100 and a wave of analyst downgrades highlight the challenges the footwear and apparel giant continues to face despite efforts to rebound.

Dow Jones S&P 100 Removal Signals Weak Position

S&P Dow Jones Indices announced that Nike will be removed from the S&P 100 index ahead of trading on September 21, ending an 18-year tenure in the benchmark. This move is part of a regular quarterly rebalancing, but it also reflects the company’s significantly diminished market value—down roughly 80% over the past five years—which analysts cite as a primary reason for the exclusion. Nike’s shrinking influence and lowest weighting within the index have made it vulnerable to removal. 

Despite speculation that it may also be dropped from the Dow Jones Industrial Average—where its low share price has rendered it the lightest weighted component—the company remains listed for now. However, market observers view its situation as increasingly precarious. 

Analyst Ratings Turn Bearish

Concurrently, several major analysts have lowered their outlooks on Nike. BofA downgraded the stock to “Underperform,” citing slower-than-expected progress in the company’s recovery. Other firms—including Barclays, Stifel, and Oppenheimer—have reduced their price targets, with Stifel cutting to $40 and Barclays lowering theirs as well. In contrast, BTIG raised its target to $55, but the prevailing sentiment remains cautious to bearish.

Why These Moves Matter

Being dropped from the S&P 100 may reduce Nike’s visibility among index-linked funds and could dampen investor demand. Analyst downgrades further erode confidence in Nike’s ability to execute a meaningful turnaround, especially as revenue struggles in key segments like Sportswear and Jordan persist—despite strength in categories such as running and greater North America wholesale.

Outlook for Nike—What’s Next

Investors will likely be watching closely as Nike prepares for its upcoming fiscal quarter. With sentiment weighed down by index exclusion and analyst skepticism, any sign of renewed traction—especially in underperforming segments or geographies like China—may be critical to restoring investor confidence. Until then, Nike’s place among blue-chip benchmarks and investor target lists remains uncertain.

Verified NKE stock snapshot: $36.39, up 2.62% as of September 28, 2026.