eyeQ: Nike, Burberry, L&G

“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ

• Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary

This series of weekly articles uses eyeQ’s smart machine to highlight 10 stocks whose share price trades at either a discount or premium to eyeQ’s Model Value price (where macro conditions say the share 'should' trade).

A minus figure in these tables indicates a share trading below eyeQ’s Model Value, implying they are ‘cheap’ versus macro conditions. A plus figure screens as rich because the current share price is above eyeQ’s Model Value.

All companies must have a model relevance above 65%, which means the macro environment is critical and any valuation signals carry strong weight.

Here are definitions of terms used in the analysis:

Model value

Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.

Model relevance

How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.

Fair Value Gap (FVG)

The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.

Long Term model

This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.

UK Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 19 June 2026.

Burberry

UK fashion brand Burberry Group (LSE:BRBY) is also a macro story with model confidence at 80%. This time macro is neutral. eyeQ model value fell over Feb/March courtesy of the Iran fall-out, recovered in April, but has spent May and June moving sideways.

This time its inflation and bond market volatility that dominate the picture. BRBY wants both lower. The good news is lower crude oil prices are helping inflation expectations fall. Bond market volatility will be wary of political headlines. If Andy Burnham becomes PM, the bond vigilantes will want to avoid big fiscal giveaways. Anything deemed fiscally irresponsible would see rate vol spike and that would be a big headwind for the fashion stock.

This time though the stock has moved below macro-warranted fair value. Burberry sits almost 3.5% cheap to eyeQ model value. Once again, that’s not a big enough fair value gap to prompt a signal. But it does suggest value is starting to build and this is a name to watch.

International Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 19 June 2026.

Nike

Nike Inc Class B (NYSE:NKE) has been a macro play for some time. eyeQ model confidence is 86% and has been above our 65% threshold for a macro regime for almost a year. The macro picture remains pretty downbeat. eyeQ model value has fallen 8.2% over the last month and is down almost 28% in 2026. In big picture terms, the trend points lower.

One of the biggest headwinds is the US bond market - specifically the shape of the yield curve. The stock wants a steeper yield curve - typically associated with healthy economic growth. More recently, the yield curve has flattened sharply as markets fret the new chair of the Federal Reserve Kevin Warsh will be hiking interest rates.

While that narrative holds, the macro picture will remain cautious. And while Nike’s stock is down, it’s lagging the move lower in macro fundamentals. It sits just over 9% rich to aggregate macro conditions. That fair value gap is not yet sufficient to fire a bearish signal; but it is enough for us to want to steer clear of the stock in the near term.