Nike (NKE) Dips More Than Broader Markets: What You Should Know
Nike (NKE) closed at $107.93 in the latest trading session, marking a -1.54% move from the prior day. This change lagged the S&P 500's 1.44% loss on the day. Elsewhere, the Dow lost 1.03%, while the tech-heavy Nasdaq lost 0.11%.
Heading into today, shares of the athletic apparel maker had gained 17.32% over the past month, outpacing the Consumer Discretionary sector's gain of 9.06% and the S&P 500's gain of 6.22% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be December 20, 2022. On that day, Nike is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 20.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.58 billion, up 10.76% from the year-ago period.
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.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nike is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 36.9. This represents a premium compared to its industry's average Forward P/E of 18.58.
It is also worth noting that NKE currently has a PEG ratio of 3.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel industry currently had an average PEG ratio of 3.63 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 232, putting it in the bottom 8% 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.
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
