In the latest trading session, Nike (NKE) closed at $86, marking a -1.38% move from the previous day. This change lagged the S&P 500's daily loss of 1.09%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 1.19%.
Coming into today, shares of the athletic apparel maker had gained 2.64% in the past month. In that same time, the Consumer Discretionary sector gained 0.27%, while the S&P 500 gained 2.62%.
NKE will be looking to display strength as it nears its next earnings release. On that day, NKE is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 5.97%. Our most recent consensus estimate is calling for quarterly revenue of $10.45 billion, up 5.04% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.90 per share and revenue of $42.21 billion. These results would represent year-over-year changes of +16.47% and +7.91%, respectively.
Investors might also notice recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NKE currently has a Zacks Rank of #4 (Sell).
In terms of valuation, NKE is currently trading at a Forward P/E ratio of 30.03. For comparison, its industry has an average Forward P/E of 16.24, which means NKE is trading at a premium to the group.
It is also worth noting that NKE currently has a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NKE's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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