Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE) closed the most recent trading day at $107.34, moving +0.21% from the previous trading session. This move lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the athletic apparel maker had gained 0.64% over the past month. This has outpaced the Consumer Discretionary sector's loss of 9.41% and the S&P 500's loss of 8.32% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be June 27, 2022. In that report, analysts expect Nike to post earnings of $0.81 per share. This would mark a year-over-year decline of 12.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.18 billion, down 1.37% from the year-ago period.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.71% lower within the past month. Nike is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 24.05. Its industry sports an average Forward P/E of 11.67, so we one might conclude that Nike is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 1.72. 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 1.2 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 98, which puts it in the top 39% 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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