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In the latest trading session, Nike (NKE) closed at $142.46, marking a +0.47% move from the previous day. This change outpaced the S&P 500's 0.04% loss on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the athletic apparel maker had lost 2.48% over the past month, lagging the Consumer Discretionary sector's gain of 3.07% and the S&P 500's gain of 2.37% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release. In that report, analysts expect NKE to post earnings of $0.75 per share. This would mark a year-over-year decline of 3.85%. Our most recent consensus estimate is calling for quarterly revenue of $10.95 billion, up 8.39% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $43.12 billion. These results would represent year-over-year changes of +85% and +15.29%, respectively.
Investors should also note any recent changes to analyst estimates for NKE. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NKE is currently a Zacks Rank #3 (Hold).
Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 48.45. For comparison, its industry has an average Forward P/E of 18.99, which means NKE is trading at a premium to the group.
It is also worth noting that NKE currently has a PEG ratio of 2.51. 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 1.98 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 191, putting it in the bottom 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
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