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Not every company in the Dow Jones has been performing well lately.
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Many investors are still waiting for Apple to make significant advancements in artificial intelligence.
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Nike’s stock prices are surprisingly low when compared to historical values.
Dow Jones Industrial Average tracks the performance of 30 major stocks, representing some of the top companies globally. Since 1930, this index has increased by approximately 17,000%.
This trend provides some investors the rationale to consider low-performing stocks as they can be undervalued. Currently, Apple and Nike are at the bottom of the list, each suffering a drop of over 20% this year.
Let’s explore if either of these companies is a good buying opportunity right now.
Apple’s stock has decreased by 21% this year. The key issue seems to stem from weaker iPhone sales in China, which is concerning and affects its overall stock performance—especially if growth in its main product category continues to falter amidst opportunities in Artificial Intelligence (AI).
Last year, Apple introduced its AI platform, Apple Intelligence, adding AI features to both Mac and iOS. However, these innovations haven’t translated into the robust sales growth many investors had anticipated.
In the first half of 2025, Apple reported net sales of $219 billion, reflecting a modest 4% rise from the previous year, largely driven by significant growth in services like apps and subscriptions, while product sales saw only a 2% increase.
Apple holds a significant amount of brand power and cash, having generated $98 billion in free cash flow last year. There’s certainly potential for AI-related investments here. Still, concerns linger about Jony Ive, the former chief design officer, who has recently collaborated with OpenAI on new hardware designs—raising questions about Apple’s strategic direction.
Ive’s move to a prominent AI company like OpenAI could be a sign that Apple may struggle with clarity in the upcoming years. They do have a stronghold with their integrated hardware and services model, which many credit for a positive user experience, but for now, a stronger push in AI seems necessary.
Given the current landscape, Apple’s valuation seems less appealing. A price-to-earnings ratio of 27 appears high against projections of only 10% revenue growth in the long run. If you’re an investor seeking better returns, it might be wise to hold off until Apple establishes a more concrete AI strategy.
Nike’s stock has dropped by 21% this year from its previous highs—marking a 66% decline since peak values four years ago. The company’s decline in sales has recently brought new leadership in the hopes of revitalizing growth. If they succeed, the current stock price might become an attractive buy.
They are gearing up for earnings reports with analysts estimating solid potential as they move forward. Right now, their price-to-revenue ratios align reasonably well with expected performance, although Nike typically generates much higher returns based on historical data.
Nike remains an iconic global brand, recently generating $47 billion in sales, with footwear accounting for about two-thirds of that. Industry forecasts suggest steady demand with expectations of growth reaching $677 billion by 2030.
It seems like Nike has a defined strategy for growth—introducing new products and focusing on popular categories. Despite a recent dip in running shoe sales, they are observing promising signs of recovery in those areas.
To enhance revenues and margins, Nike plans to optimize inventory management, especially since certain items like the Air Jordan 1 have maintained high demand. As their inventory improves, prices and sales strategies may adjust favorably.
Analysts are optimistic, projecting revenues for fiscal year 2026 to be around $2.68, which would reflect a 38% rise from the year prior. If all goes well, Nike could even achieve new revenue highs by 2030, making it a compelling option for investors.
Considering these insights, you might want to reflect carefully on purchasing shares in Apple.
