In the latest trading session, Nike (NKE) closed at $105.15, marking a -0.56% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the athletic apparel maker had lost 7.25% over the past month, lagging the Consumer Discretionary sector's loss of 5.6% and the S&P 500's loss of 5.13% in that time.
Nike will be looking to display strength as it nears its next earnings release, which is expected to be September 29, 2022. In that report, analysts expect Nike to post earnings of $0.93 per share. This would mark a year-over-year decline of 19.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.37 billion, up 1% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $50.49 billion. These results would represent year-over-year changes of +1.07% and +8.08%, respectively.
Investors might also notice recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. Nike currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 27.88 right now. This represents a premium compared to its industry's average Forward P/E of 14.05.
We can also see that NKE currently has a PEG ratio of 2.23. 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 1.75 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 205, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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