Nike’s stock is bouncing at a familiar trend line in recent weeks, the same support line that it visited back in January and April. The stock’s short term bounce is impressive, but the general trend this year is still making lower highs. Fierce competition and cautious customers forced Nike to post flat yearly growth, which has reflected in its stock price. The company’s long term durability is still strong, but the short term may continue to be a challenge until economic conditions improve.
Investors are probably accepting that at this point, Nike is no longer a growth company, but it will likely be consistent enough to earn a spot in someone's dividend portfolio. Their valuation is fair, and they're steadily growing their cash reserves. This will help attract more dividend investors and aid the stock to slowly inch up long term.
Keep in mind that in a competitive space like sportswear, Nike needs to continue securing contracts with large franchises and players in order to stay relevant. Investors taking on this stock should keep in mind that any company, no matter how large, is at risk of falling prey to competitors, especially if they don't adapt to new changes.