Nike (NKE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Nike (NKE) closed at $82.86, marking a +1.06% move from the previous day. This change outpaced the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.74%.
Heading into today, shares of the athletic apparel maker had gained 8.28% over the past month, outpacing the Consumer Discretionary sector's gain of 7.61% and the S&P 500's gain of 7.71% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release. On that day, NKE is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 7.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.49 billion, up 5.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $39.11 billion, which would represent changes of +8.68% and +7.45%, respectively, from the prior year.
Any recent changes to analyst estimates for NKE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.2% higher within the past month. NKE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 31.19 right now. Its industry sports an average Forward P/E of 14.59, so we one might conclude that NKE is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.53. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.51 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 112, putting it in the top 44% 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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