In the latest trading session, Nike (NKE) closed at $108.78, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily loss of 1.12%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 3.35%.
Prior to today's trading, shares of the athletic apparel maker had lost 13.31% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.61% and the S&P 500's gain of 1.61% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release. The company is expected to report EPS of $0.66, down 26.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.56 billion, up 2.66% from the prior-year quarter.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $50.95 billion. These results would represent year-over-year changes of -13.6% and +9.08%, respectively.
Investors should also note any recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nike currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 34. This valuation marks a premium compared to its industry's average Forward P/E of 11.68.
Investors should also note that NKE has a PEG ratio of 3.2 right now. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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