Nike (NKE) Stock Moves -0.2%: What You Should Know
Nike (NKE) closed the latest trading day at $103.30, indicating a -0.2% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.6%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Coming into today, shares of the athletic apparel maker had gained 2.93% in the past month. In that same time, the Consumer Discretionary sector gained 3.27%, while the S&P 500 gained 3.56%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company's earnings per share (EPS) are projected to be $0.72, reflecting an 8.86% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.35 billion, down 0.34% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.57 per share and a revenue of $51.77 billion, indicating changes of +10.53% and +1.07%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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 has moved 0.17% higher within the past month. Nike presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 29. For comparison, its industry has an average Forward P/E of 14.14, which means Nike is trading at a premium to the group.
Meanwhile, NKE's PEG ratio is currently 1.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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
