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Nike (NKE) Gains As Market Dips: What You Should Know

In the latest trading session, Nike (NKE) closed at $107.96, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.

The athletic apparel maker's shares have seen an increase of 9.86% over the last month, surpassing the Consumer Discretionary sector's gain of 8.82% and the S&P 500's gain of 7.49%.

The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is slated to reveal its earnings on December 21, 2023. On that day, Nike is projected to report earnings of $0.85 per share, which would represent no growth from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.41 billion, indicating a 0.71% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.74 per share and revenue of $53.14 billion, which would represent changes of +15.79% and +3.75%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% decrease. As of now, Nike holds a Zacks Rank of #3 (Hold).

Looking at valuation, Nike is presently trading at a Forward P/E ratio of 28.8. This signifies a premium in comparison to the average Forward P/E of 15.57 for its industry.

Also, we should mention that NKE has a PEG ratio of 1.79. 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. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.65.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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