Nike (NKE) closed the most recent trading day at $84.01, moving +0.41% from the previous trading session. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 1.13%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.7% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.88% and the S&P 500's loss of 2.34% in that time.
NKE will be looking to display strength as it nears its next earnings release. In that report, analysts expect NKE to post earnings of $0.67 per share. This would mark a year-over-year decline of 2.9%. Meanwhile, our latest consensus estimate is calling for revenue of $10.17 billion, up 3.89% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.55 per share and revenue of $39.10 billion, which would represent changes of +5.37% and +7.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NKE. 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NKE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NKE currently has a Forward P/E ratio of 32.79. This represents a premium compared to its industry's average Forward P/E of 13.98.
Investors should also note that NKE has a PEG ratio of 2.52 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NKE's industry had an average PEG ratio of 1.77 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 69, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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