Nike (NKE) closed the most recent trading day at $107.88, moving -0.37% from the previous trading session. This change was narrower than the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the athletic apparel maker had lost 5.78% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.65% in that time.
Nike will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nike to post earnings of $0.93 per share. This would mark a year-over-year decline of 19.83%. Our most recent consensus estimate is calling for quarterly revenue of $12.37 billion, up 0.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.80 per share and revenue of $50.49 billion, which would represent changes of +1.33% and +8.1%, respectively, from the prior year.
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. 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. 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 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 has moved 0.62% lower. Nike currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 28.5. For comparison, its industry has an average Forward P/E of 12.6, which means Nike is trading at a premium to the group.
Meanwhile, NKE's PEG ratio is currently 2.28. 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. NKE's industry had an average PEG ratio of 1.8 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 234, putting it in the bottom 8% 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.
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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NIKE, Inc. (NKE) : Free Stock Analysis Report
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