Nike (NKE) Dips More Than Broader Markets: What You Should Know
Nike (NKE) closed at $103.83 in the latest trading session, marking a -1.51% move from the prior day. This change lagged the S&P 500's 0.39% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the athletic apparel maker had gained 19.12% in the past month. In that same time, the Consumer Discretionary sector gained 8.06%, while the S&P 500 gained 6.77%.
Nike will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nike to post earnings of $0.66 per share. This would mark a year-over-year decline of 20.48%. Meanwhile, our latest consensus estimate is calling for revenue of $12.58 billion, up 10.76% from the prior-year quarter.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $48.97 billion. These results would represent year-over-year changes of -20.8% and +4.84%, respectively.
Any recent changes to analyst estimates for Nike should also be noted by investors. Recent revisions tend to reflect the latest near-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. Over the past month, the Zacks Consensus EPS estimate has moved 3.88% lower. Nike is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Nike currently has a Forward P/E ratio of 35.49. This represents a premium compared to its industry's average Forward P/E of 17.75.
Meanwhile, NKE's PEG ratio is currently 3.49. 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 industry currently had an average PEG ratio of 3.49 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
