PCS In Practice

Three Companies, Three Convexity Profiles

Nike, Visa, and NVIDIA sit at three different points on the convexity spectrum: negative growth, moderate stable growth, and explosive growth. Each case study below shows the full weekly price history alongside the current PCS tier standing, plus the most recent quarters computed against this site's live, fully-verified scoring pipeline.

A note on the two data layers below. The historical narrative, quarter-by-quarter phase bands, and comparison statistics for each stock reflect the original published case study analysis. The Recent Verified Quarters table for each stock is computed fresh against the current production PCS pipeline, the same one that scores PCS 500, PCS ESG 500, PCS 100, and PCS ARE every quarter. The scoring methodology has been refined several times since the original analysis (point-in-time discipline, trailing-twelve-month conventions, and revenue/earnings derivation fixes), so a figure for the same historical quarter can differ slightly between the two layers. Per this site's standing practice, already-published historical figures are never silently rewritten, only new quarters are appended using the current methodology.
NKE
Nike, Inc.
Negative Growth Profile
Tier 4
$178$143$108$73$38 20192020202120222023202420252026

Weekly close, 2019-09-06 to 2026-09-02 · 7 years

Tier 4
Current Tier
$46.23
Price at Quarter-End
2026-05-31
Most Recent Verified Quarter
Live Pipeline Recent Verified Quarters
Quarter EndTiergRgEPrice
2024-08-313-2.83%+12.91%$83.32
2024-11-304-4.97%-0.19%$78.77
2025-02-284-7.30%-19.99%$79.43
2025-08-314-7.14%-49.14%$77.37
2025-11-304-5.03%-52.16%$64.63
2026-02-284-2.71%-49.96%$62.18
2026-05-314+0.2%-3.3%$46.23

Note: NKE's fiscal quarters do not align to calendar quarters (fiscal year ends in May); quarter-end dates above are NKE's own reporting periods, not this site's product-rebalance calendar.

Original Analysis Historical Pattern (as originally published)

Nike’s PCS swung from 3.13 (Tier 1) to −0.60 (Tier 4) over 22 quarters, the widest PCS range of the three stocks in this study. The Q1 2022 → Q2 2022 tier collapse (Tier 1 → Tier 3, PCS dropping from 2.13 to 0.24) preceded Nike’s continued 38% price decline. The PCS signal led the price. Meanwhile, beta remained near 1.0 and RMW at 0.63 throughout, offering no warning of the structural deterioration. That deterioration has continued in the verified data above: six straight Tier 4 quarters through fiscal 2026, with earnings growth (gE) running deeply negative even as revenue decline has moderated.

PeriodTierPCS RangePrice RangeSignal
Q4 201921.78$101Earnings recovery from FY2018 tax charge
Q1-Q4 20204−0.54 to −0.60$83-$141COVID collapse; PCS correctly penalizes deteriorating fundamentals
Q2 2021-Q1 202212.13-3.13$135-$167Peak PCS = 3.13 at Q3 2021; stock peaks Q4 2021
Q2 2022-Q1 202430.01-0.24$83-$123Normalization; PCS converges toward zero
Q3 2024-Q1 20254−0.04 to −0.38$63-$88Structural decline; PCS deepening negative
Quarters in Tier 14 of 22 (18%)
Quarters in Tier 410 of 22 (45%)
PCS VolatilityHighest of three stocks
Beta (5Y)1.32
RMW Loading0.63 (p=0.006, Significant)
V
Visa, Inc.
Moderate, Stable Growth Profile
Tier 3
$382$323$264$206$147 20192020202120222023202420252026

Weekly close, 2019-09-06 to 2026-09-02 · 7 years

Tier 3
Current Tier
$302.24
Price at Quarter-End
2026-03-31
Most Recent Verified Quarter
Live Pipeline Recent Verified Quarters
Quarter EndTiergRgEPrice
2024-06-303+9.70%+15.57%$262.47
2024-12-313+10.35%+11.05%$316.04
2025-03-313+10.19%+8.13%$350.46
2025-06-303+11.38%+6.18%$355.05
2025-12-313+12.47%+4.11%$350.71
2026-03-313+14.37%+11.82%$302.24

Note: Visa's fiscal year ends in September; quarter-end dates above are Visa's own reporting periods.

Original Analysis Historical Pattern (as originally published)

Visa’s PCS never exceeded 1.45 in the original 22-quarter study, a low-convexity, high-stability franchise. The narrow PCS band reflects Visa’s toll-booth business model: steady, predictable revenue and adjusted-earnings growth that doesn’t swing wildly. This is the textbook Tier 3 stock. Beta at 0.80 and RMW at 0.36 correctly suggest low volatility and moderate profitability exposure, but neither can tell you Visa will compound at nearly 2x over the period. The verified data above shows the pattern holding six straight quarters later: Tier 3 throughout, PCS drifting up toward 0.68 as both revenue and adjusted-earnings growth firmed in the most recent quarter.

PeriodTierPCS RangePrice RangeSignal
Q4 2019-Q1 202030.70-0.77$154-$180Steady 12-13% revenue growth
Q2 2020-Q2 20214−0.49 to 0.11$185-$226Travel revenue hit; stock rose on recovery expectations
Q3 2021-Q3 202221.05-1.45$173-$216Only 2 quarters at Tier 2; peak recovery growth
Q4 2022-Q1 202530.52-1.12$203-$348Remarkably stable; +71% price gain with steady PCS
Quarters in Tier 22 of 22 (9%)
Quarters in Tier 45 of 22 (23%)
PCS VolatilityLowest of three stocks
Beta (5Y)0.80
RMW Loading0.36 (p=0.055, Marginal)
NVDA
NVIDIA Corporation
Explosive Growth Profile
Tier 1
$225$170$115$60$4 20192020202120222023202420252026

Weekly close, 2019-09-06 to 2026-09-02 · 7 years · split-adjusted

Tier 1
Current Tier
$206.84
Price at Quarter-End
2026-07-26
Most Recent Verified Quarter
Live Pipeline Recent Verified Quarters
Quarter EndTiergRgEPrice
2024-10-271+152.44%+233.94%$141.54
2025-04-271+86.17%+80.23%$111.01
2025-07-271+71.55%+63.36%$173.50
2025-10-261+65.22%+57.27%$186.26
2026-04-261+70.68%+107.90%$208.27
2026-07-261+83.38%+122.73%$206.84

Note: NVIDIA's fiscal year ends in late January; quarter-end dates above are NVIDIA's own reporting periods. A quarter ending around 2026-01-25 (fiscal Q4/annual) did not resolve as a standalone anchor in this pipeline's point-in-time logic and is omitted rather than estimated.

Original Analysis Historical Pattern (as originally published)

NVIDIA’s PCS peaked at 61.77 in Q2 2024, the highest PCS ever recorded in this dataset. When both revenue and earnings grow at triple-digit rates together, PCS captures a convexity that linear models miss entirely. Beta at 2.17 tells you NVIDIA is volatile, and RMW at 0.01 (p=0.978) tells you the Fama-French profitability factor explains nothing about NVIDIA’s returns. PCS captures what both miss. The verified data above shows the AI-driven Tier 1 run has continued for six consecutive quarters since, with PCS settling into a still-extraordinary 4-18 range as the growth base itself has scaled into the hundreds of billions.

PeriodTierPCS RangePrice RangeSignal
Q1 20204−0.56$6.56Crypto hangover + COVID
Q4 2020-Q2 202213.08-5.70$13-$277 consecutive Tier 1 quarters; gaming boom
Q3 2022-Q2 20234−0.84 to 1.43$12-$42Crypto winter; PCS collapsed but stock surged on AI hype
Q3 2023-Q1 202510.82-61.77$43-$134AI supercycle; unprecedented PCS levels
Quarters in Tier 113 of 22 (59%)
Quarters in Tier 45 of 22 (23%)
PCS VolatilityExtreme; 62-point range
Beta (5Y)2.17
RMW Loading0.01 (p=0.978, Not Significant)

These case studies are illustrative research examples, not a recommendation to buy, sell, or hold any security. Unlike the product pages on this site, PCS scores and tier-classification detail are shown here for educational purposes, consistent with how these three companies are discussed in the underlying research. Past PCS classification and past price performance are not indicative of future results. Neither Michael Milligan nor Nina Milligan, CFP®, is a registered investment adviser or holds a securities license, and nothing on this page constitutes investment advice.

See the Framework Applied Live

These three companies illustrate the range of convexity profiles PCS identifies. See how the full framework scores the entire S&P 500 and Nasdaq-100, every quarter.

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