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Nike (NKE) closed at $174.24 in the latest trading session, marking a -0.37% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the athletic apparel maker had gained 6.97% over the past month, outpacing the Consumer Discretionary sector's loss of 0.49% and the S&P 500's gain of 4.05% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be December 20, 2021. The company is expected to report EPS of $0.62, down 20.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.23 billion, down 0.09% from the prior-year quarter.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $47.11 billion. These results would represent year-over-year changes of 0% and +5.76%, respectively.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nike is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 49.07. For comparison, its industry has an average Forward P/E of 21.94, which means Nike is trading at a premium to the group.
Meanwhile, NKE's PEG ratio is currently 3.37. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 4% 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.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
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