As Nike continues to navigate its turnaround journey, one analyst remains skeptical about the company’s ability to deliver on its growth promises. According to Jay Sole of UBS, the stock may pull back in the near term due to revised down EPS estimates and a lack of visibility into the company’s future performance.

Sole notes that while sales growth could improve from the weak guidance provided in the fourth quarter of 2026, the stock is still not cheap at 33 times Jay’s FY27 EPS. This raises questions about whether the company can sustain its growth momentum into the future.

The analyst highlights that this is not the first time Nike has promised a turnaround, with many points over the last four years where it seemed like the business would inflect over the next 12 months. However, these promises have yet to materialize, leading Sole to question whether a turnaround is truly imminent.

While Sole acknowledges that Nike has made progress in some areas, such as its digital transformation and direct-to-consumer expansion, he believes more work needs to be done to justify the current valuation. Until then, he remains cautious on the stock and advises investors to wait for a clearer signal of a turnaround before considering an investment.